18 U.S.C. §656

Theft, Embezzlement or Misapplication of Funds

Crime and Penalties:

This charge is essentially an extension of FIRREA and the 1990 Crime Control Act. It established increased penalties, from the originally-imposed $5,000 fine and 5 years imprisonment term to a $1,000,000 fine and a potential 30 year prison sentence under the Crime Control Act.

  • What is the difference between “misapplication” and “embezzlement”?

Whereas misapplication is the unlawful appropriation (handling, possession, etc) of money without the requirement that the defendant firstly have had lawful possession of this money, embezzlement requires that the defendant have lawful possession of funds before misappropriating the funds. So, it is easier to charge misapplication because the government’s only burden is to prove that funds were spent under false pretenses. There is no requirement to prove legal entrustment of funds as is the case with embezzlement.

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If you have recently been arrested for Embezzlement or related offense, please don’t hesitate to call us for a free, no-obligation consultation with Seppi Esfandi. During your call, Esfandi will hear the details of the case and advise you on the best approach to defend yourself. If you wish, a consultation in our office can be promptly scheduled.

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