Official Text
“Whoever, being entrusted with funds or property, dishonestly misappropriates or converts the same to his own use, or uses or disposes of that property in violation of any legal direction, commits embezzlement.”
Legal Analysis
Elements to Prove:
- Entrustment of funds or property.
- Dishonest misappropriation or diversion.
- Breach of legal or fiduciary duty.
Potential Defenses:
- No entrustment proved.
- Good-faith use with authorization.
- Accounting error without dishonest intent.
Practical Examples
What Constitutes the Offense:
Diverting client funds, misusing company accounts for personal expenses, siphoning trust money.
What Doesn't Constitute:
Authorized reimbursement, proper accounting adjustments, or good-faith mistakes promptly rectified.
Punishment
Imprisonment up to 7 years, and Fine