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Embezzlement: meaning, definitions and examples

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embezzlement

 

[ɪmˈbɛz(ə)lmənt ]

Definition

Context #1 | Noun

financial crime

Embezzlement is the act of dishonestly withholding assets for the purpose of conversion (theft) of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes.

Synonyms

fraud, misappropriation, theft.

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Word Description / Examples
embezzlement

Used when someone illegally takes money that they have been entrusted with, especially in a professional setting like a company or organization.

  • The accountant was fired for embezzlement after it was revealed he had been siphoning off company funds.
  • She was convicted of embezzlement for stealing from the charity she managed.
misappropriation

Typically used in a legal or formal context to describe the act of taking something for one's own use without permission, often related to funds or resources.

  • The politician faced charges of misappropriation of government funds.
  • Misappropriation of company resources led to his dismissal.
theft

General term for taking someone else's property without permission; can apply to a wide range of situations from shoplifting to stealing cars.

  • She was arrested for theft after shoplifting several items from the store.
  • The neighborhood has seen a rise in bicycle theft recently.
fraud

Broad term often used to describe various illegal acts involving deception, such as lying or misrepresenting information, usually for financial gain.

  • The company was accused of committing fraud by overstating its earnings.
  • He was charged with fraud for using fake IDs to open bank accounts.

Examples of usage

  • The accountant was charged with embezzlement of company funds.
  • The embezzlement of public funds is a serious offense.

Interesting Facts

Etymology

  • The word comes from the French 'déménagement', which means to take away, combined with 'embezzler', meaning to misuse funds.
  • It gained popularity in the early legal writings in the 17th century, reflecting concerns about mismanagement of public funds.
  • In legal terms, embezzlement is classified as a form of theft and often includes betrayal of trust.

Historical Cases

  • One of the most famous cases involved Charles Ponzi, whose fraudulent schemes in the 1920s involved significant embezzlement tactics.
  • In the early 2000s, Enron's financial scandal highlighted embezzlement through accounting fraud, dramatically impacting corporate laws.
  • The case of Martha Stewart in the 2000s involved insider trading, blending embezzlement and investment fraud into public spectacle.

Psychology

  • Studies show that those who commit this act often have a sense of entitlement or belief that their actions are justified because they feel underappreciated.
  • Embezzlers might experience cognitive dissonance, struggling with the guilt of stealing while rationalizing their actions.
  • Perpetrators may also exhibit a high degree of risk-taking behavior, seeking thrill from deception and the possibility of getting away with it.

Pop Culture

  • Television shows like 'Breaking Bad' and 'Better Call Saul' delve into financial crimes, often portraying characters involved in embezzlement.
  • Movies such as 'The Wolf of Wall Street' illustrate the lavish lifestyles that can result from financial fraud and the eventual legal consequences.
  • Documentary series often dissect real-life embezzlement cases, showing both the criminal's perspective and the impact on victims.

Prevention and Law

  • Implementing strict internal controls within companies is critical in preventing embezzlement, including regular audits and whistleblower policies.
  • Many countries have specific laws and regulations to combat financial fraud, mandating severe penalties for those convicted.
  • Awareness training and ethical guidelines in organizations can deter potential embezzlers by promoting a culture of integrity.

Translations

Translations of the word "embezzlement" in other languages:

🇵🇹 desfalque

🇮🇳 गबन

🇩🇪 Unterschlagung

🇮🇩 penggelapan

🇺🇦 розкрадання

🇵🇱 defraudacja

🇯🇵 横領 (おうりょう)

🇫🇷 détournement de fonds

🇪🇸 malversación

🇹🇷 zimmet

🇰🇷 횡령 (hoengnyeong)

🇸🇦 اختلاس (ikhtilās)

🇨🇿 zpronevěra

🇸🇰 sprenevera

🇨🇳 挪用 (nuóyòng)

🇸🇮 poneverba

🇮🇸 fjárdrátt

🇰🇿 ысырап ету

🇬🇪 გაფლანგვა (gaplangva)

🇦🇿 mənimsəmə

🇲🇽 malversación

Word Frequency Rank

With rank #17,667, this word belongs to specialized vocabulary. While not common in everyday speech, it enriches your ability to express complex ideas.