Understanding Embezzlement: A White-Collar Crime

What is embezzlement?

• A form of white-collar crime involving misappropriation of assets

• A type of violent crime

• A legal business practice

• A method of tax evasion

Which of the following is a characteristic of embezzlement?

• Creation of false bills and receipts

• Involves selling or advertising

• Requires physical theft

• Always involves a large sum of money

How does embezzlement differ from fraud?

• Embezzlement involves illegal diversion of funds directly from a business

• Fraud always involves embezzlement

• Embezzlement requires deceiving a subject to voluntarily give up information

• Fraud is a form of embezzlement

What is a potential punishment for embezzlement?

• Up to three years in jail and fines

• Community service

• Mandatory financial training

• No legal consequences

What is a warning sign of potential embezzlement?

• Unexplained financial changes

• Consistent employee behavior

• Regular audits

• High employee satisfaction