Embezzlement Defense Attorneys Fort Lauderdale

Building a Strong Defense Against Embezzlement Charges

Embezzlement is a serious federal offense involving the unlawful misappropriation of funds or property entrusted to an individual’s care. Unlike traditional theft, embezzlement occurs when someone—such as an employee, public official, or financial manager—abuses their position of trust for personal gain. These offenses are prosecuted at the federal level when they involve government agencies, federal programs, or businesses with ties to U.S. government property. Individuals may face severe consequences, including substantial fines, restitution, and lengthy prison sentences if convicted.

Given the high stakes, securing an experienced embezzlement defense lawyer is essential. While the prosecution must prove guilt beyond a reasonable doubt, a well-prepared defense can highlight the weaknesses in the government’s case. An effective defense requires carefully analyzing financial records, identifying inconsistencies, consulting with forensic accountants, and interviewing key witnesses. A skilled attorney can contest the prosecution’s evidence, present alternative explanations, and advocate for a favorable outcome, whether that involves reduced charges, case dismissal, or acquittal.

At Hager & Schwartz, P.A., we recognize how overwhelming these accusations can be. Backed by over 50 years of combined experience as former prosecutors and dedicated defense attorneys, we know how the government builds its case—and, more importantly, how to dismantle it. We leverage this experience to protect our clients’ rights, reputations, and futures.

If you or a loved one faces federal embezzlement charges, now is the time to act. Schedule a free consultation with our Fort Lauderdale defense team to discuss your case and explore your legal options.

What Constitutes Federal Embezzlement?

Embezzlement is a financial crime that involves misappropriating funds or property entrusted to an individual due to their professional or fiduciary relationship with an organization.

Under Chapter 31 of Title 18 of the U.S. Code, federal law addresses various forms of embezzlement, including:

• Theft of public money, property, or records
• Unauthorized deposit of public funds
• Theft or bribery involving federal programs

Because these offenses typically involve public trust, they are aggressively prosecuted and can lead to significant penalties, including lengthy prison sentences, restitution orders, and hefty fines.

Elements of a Federal Embezzlement Charge

Federal prosecutors must establish several key elements beyond a reasonable doubt to convict someone of embezzlement.

These elements include the following:

• Fiduciary relationship: The defendant occupied a position of trust, meaning they were legally accountable for managing money or property on behalf of an employer, government agency, or organization.
• Access to property through employment: The alleged embezzled funds or assets came into the defendant’s possession due to their role within the organization.
• Fraudulent use or conversion: The defendant knowingly misused, diverted, or took the property for personal gain or unauthorized purposes.
• Intent to deprive the owner: The prosecution must prove that the defendant acted intentionally to permanently or temporarily deprive the rightful owner of the property.

These elements distinguish embezzlement from simple theft, as the crime hinges on abusing an established position of trust.

Common Types of Federal Embezzlement Cases

Embezzlement can take many forms, but federal charges typically arise when the crime involves government funds, public property, or organizations that receive federal assistance. Because these offenses often involve a breach of trust, federal prosecutors pursue them aggressively, making it essential for defendants to understand the nature of the allegations they face.

Let’s look at some of the most common federal embezzlement charges.

Embezzling Public Money, Property, or Records (18 U.S.C. § 641)

This charge applies when an individual misuses, steals, or fraudulently converts any asset belonging to the U.S. government. It can include unauthorized use of federal funds, taking government-owned property for personal benefit, or altering official records. Even minor infractions, such as an employee diverting federal funds for unauthorized expenses, can lead to serious consequences, including significant fines and lengthy prison sentences. An employee theft attorney is critical for fighting these allegations.

Unauthorized Receipt of Public Money by a Banker (18 U.S.C. § 644)

Bankers and financial professionals who accept, hold, or use public funds without proper authorization may be charged under this statute. For instance, if a bank employee receives federal funds they are not authorized to handle and uses them for personal or business-related expenses, they could face embezzlement charges. These cases often involve detailed financial investigations and require an experienced legal team to examine banking records, transactions, and intent.

Theft or Embezzlement from an Employee Benefit Plan (18 U.S.C. § 664)

Federal law heavily regulates employee pension and welfare benefit plans, and any unauthorized use, misallocation, or mismanagement of these funds can result in federal prosecution. Employers, financial administrators, or fiduciaries accused of diverting money from employee retirement or healthcare plans face severe criminal and civil penalties and potential restitution to affected employees.

Theft or Bribery Involving Federally Funded Programs (18 U.S.C. § 666)

This statute covers cases where an agent or employee of an organization that receives federal funding unlawfully takes, transfers, or misapplies assets. This offense can include public officials diverting federal grants, employees of non-profits misusing program funds, or executives channeling government resources for personal gain. Because these cases involve federal oversight, defendants often face intensive investigations and aggressive prosecution.

Embezzlement and RICO/Racketeering Charges

Under the Racketeer Influenced and Corrupt Organizations Act (RICO), embezzlement can serve as a predicate offense for broader racketeering charges. If prosecutors allege that an individual engaged in a pattern of embezzlement tied to an organized criminal enterprise, they may pursue RICO charges, which carry enhanced penalties, asset forfeiture, and extended prison terms. This type of case is particularly complex and requires a strategic legal defense to challenge allegations of ongoing criminal activity.

Federal Penalties for Embezzlement

Embezzlement is a serious federal offense with severe legal and financial consequences. Federal prosecutors aggressively pursue embezzlement cases because they often involve a breach of trust. A conviction can result in significant fines, imprisonment, and long-term repercussions on a person’s career and financial stability. Understanding possible penalties is crucial for anyone facing embezzlement charges.

Financial Penalties, Restitution, and Asset Forfeiture

Individuals convicted of federal embezzlement often face significant financial penalties. Courts may impose fines correlating with the amount of money or property misappropriated, ranging from thousands to millions of dollars.
Judges frequently order restitution, compelling defendants to repay stolen funds or compensate affected parties. In more serious cases, the government may seize assets acquired through embezzlement, including real estate, bank accounts, and other valuable property.

Prison Sentences Based on the Severity of the Offense

The length of a prison sentence for embezzlement depends on the amount of money involved and other aggravating factors.

For instance, under 18 U.S.C. § 641, the penalties are as follows:

• If the value of stolen property exceeds $1,000, a defendant faces up to 10 years in federal prison.
• If the embezzled amount is $1,000 or less, the charge is typically a misdemeanor, punishable by up to one year in prison.

However, additional factors—such as multiple offenses, involvement in an organized scheme, or ties to RICO violations—can increase sentencing severity. In complex cases, federal prosecutors may seek enhanced penalties that could result in decades behind bars.

Impact on Professional Licenses and Future Employment

Beyond fines and incarceration, an embezzlement conviction can have lasting repercussions on a person’s career. Many professions—such as finance, law, healthcare, and government—require ethical integrity and financial responsibility. A conviction could lead to revocation or suspension of professional licenses, making it difficult to continue working in these fields. Additionally, employers conducting background checks may view a federal financial crime conviction as a red flag, severely limiting job opportunities.

Possible Legal Defenses for Embezzlement Charges

A federal embezzlement charge does not automatically result in a conviction. The prosecution must prove every element of the offense, including intent, fraudulent conduct, and unauthorized use of funds or property, beyond a reasonable doubt. Depending on the circumstances, several legal defenses may be available to challenge the allegations and seek a favorable outcome.

Lack of Intent

The government must prove that the accused intentionally misappropriated money or property for personal gain to convict someone of embezzlement. If the defendant can show that the transaction resulted from a mistake, a misunderstanding of financial records, or an error in judgment instead of an intentional act of fraud, the prosecution’s case is weakened. Without clear evidence of fraudulent intent, the charges may be reduced or dismissed.

Insufficient Evidence

Often, embezzlement charges rely on complex financial transactions and circumstantial evidence. A strong defense strategy may involve challenging the reliability of the prosecution’s documentation, exposing gaps in the evidence, or questioning the accuracy of financial records. The case may not hold up in court if prosecutors cannot prove that the accused knowingly misappropriated funds.

Duress or Coercion

If the defendant can show that they acted under coercion or pressure from another party, this may serve as a valid defense. For instance, if an employer, supervisor, or third party forced the accused to handle financial transactions fraudulently under threats of retaliation, job loss, or personal harm, an attorney can argue that the defendant was not acting of their own free will. Proving duress can be challenging, but this defense can be compelling with proper evidence—such as emails, witness statements, or other communications.

Mistaken Identity or False Accusation

Embezzlement investigations often involve multiple employees, financial officers, and external stakeholders handling funds. It is not uncommon for innocent individuals to be falsely accused due to misunderstandings, accounting errors, or misinterpretations of financial transactions.

In some cases, another individual may have committed the crime and shifted the blame to the defendant.

A strong defense team can conduct an independent investigation to uncover the truth, review internal communications, audit financial records, and identify alternative suspects if necessary.

How a Federal Embezzlement Defense Lawyer Can Help

Facing federal embezzlement charges can be an overwhelming experience, with the potential for severe penalties, reputational damage, and long-term consequences. Because these cases involve intricate financial transactions, federal regulations, and aggressive prosecution, having an experienced misappropriation of funds lawyer is critical to protecting your rights and pursuing an optimal result.

The Importance of Early Legal Intervention

Federal financial crime investigations are highly complex, often involving forensic accounting, banking regulations, and meticulous audits. Prosecutors build their cases on detailed financial records, digital trails, and witness testimony. The sooner you seek legal representation, the stronger your defense can be.

A financial crimes lawyer can:

• Analyze financial records to identify inconsistencies or gaps in the prosecution’s case.
• Verify compliance with legal procedures to protect against unlawful investigations.
• Develop defense strategies early to challenge allegations before formal charges are filed.

Navigating the federal legal system requires in-depth knowledge of financial laws, courtroom procedures, and strategic counterarguments. Without dedicated legal counsel, individuals risk facing severe penalties and lasting consequences.

At Hager & Schwartz, P.A., we aggressively and proactively defend clients accused of embezzlement and other white-collar crimes. Backed by over 50 years of combined experience—and backgrounds as former prosecutors—we know how the government builds its case and how to expose weaknesses in its strategy.

Our defense approach includes:

• Conducting a thorough independent investigation to uncover evidence supporting your case.
• Challenging the prosecution’s financial analysis and disputing the interpretation of transactions.
• Build a compelling narrative reflecting your side of the story, making your voice heard.
• Negotiating with federal prosecutors for case dismissal, reduced charges, or alternative sentencing.

Our firm has successfully defended clients facing embezzlement, financial fraud, and other federal white collar charges by combining legal knowledge, strategic defense, and client-focused advocacy.

Do not wait to seek legal representation if you are under investigation or facing federal embezzlement charges. Your future, career, and reputation are at stake. Our attorneys at Hager & Schwartz, P.A. are ready to fight for you.

Contact us for a free, confidential consultation.