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What is the difference between fraud and embezzlement?

August 24, 1999



Subject:  fraud/embezzlement?
Date:  Sat, 14 Aug 1999

Please, what is the difference between fraud and embezzlement? If a company leases a condo to an employee and the signed lease specifically states that the employee may not sublet the condo, but the employee does it anyway and pockets $10,000, does that count as theft or fraud?

Can charges be filed against the employee?

Thank you!

Answer

Date:  Fri, 20 Aug 1999

I can't help wondering why you are writing me about this matter.

Go see an attorney at once!

According to Webster's dictionary, a fraud is the use of deception for unlawful gain or unjust advantage. To embezzle is to steal or use for one's own purposes money or other property which has been entrusted to one as an employee, servant or agent.

I'm not usre your situation is either one, but your employee has damaged you by not abiding by his or her agreeement, and you should be entitled to recoup your losses.

Good luck!

Mike Gray

Response

Date:  Sat, 21 Aug 1999

I was writing to you because your name came up when I did a search on the web. The guy ended up resigning so he wouldn't get fired.

Thank you for your help.

Answer

Date:  Tue, 24 Aug 1999

Thanks for writing.

It's good to "nip these cases in the bud."

Good luck!

Mike Gray

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What is the difference between fraud and embezzlement?


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Michael Gray, CPA
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