The offence of embezzlement and its consequences

Economic offences are taken seriously by the criminal investigation bodies, particularly where there are suspicions concerning missing sums of money, the use of company assets or the mismanagement of assets. Among the most serious accusations of this kind is delapidarea.

An accusation of embezzlement can immediately affect professional reputation, the relationship with the employer, a company's business and the liberty of the person under investigation. In many cases, mere suspicion can lead to internal audits, criminal complaints, seizure of assets, dismissal or commercial deadlock.

Even so, not every shortfall in the accounts amounts to embezzlement. Not every accounting error is a criminal offence. That is why, if you are wrongly accused, the first thing you must do is to approach the situation calmly and contact a criminal law specialist without delay.

What does embezzlement mean?

In practice, embezzlement may also arise in the private sector, by virtue of the provisions extending liability to persons exercising duties within a legal entity. Cases may therefore be brought against employees, stock managers, cashiers, administrators, directors or accountants who have access to a company's money, goods or valuables.

The key element is the relationship of trust. The accused must have had genuine responsibility for administering or managing the assets. Where that link is absent, the charge of embezzlement may be open to challenge and must be examined carefully.

Situations that can lead to embezzlement charges

Embezzlement may be alleged in a number of contexts. The most common examples are:

• A stock manager is accused of taking money from the daily takings
• An employee uses company assets for personal purposes
• An administrator withdraws sums from the company account without justification
• A cashier cannot account for the differences between the book balance and the cash on hand
• A director approves payments to related companies for services never rendered
• A person uses the company's fuel, equipment or goods for their own benefit
• An employee alters documents to conceal shortfalls in the accounts
• A finance officer transfers sums to accounts controlled directly or indirectly by them

These situations may appear clear-cut at first sight, but in practice matters are more complex. Shortfalls sometimes stem from accounting errors, weak internal procedures, faults in IT systems or decisions approved verbally by management. A sound defence therefore starts from the documents, not from assumptions.

What is the penalty for embezzlement?

Embezzlement carries severe penalties. In the form set out in the Cod penal (Criminal Code), the penalty may be imprisonment together with a ban on exercising certain rights. Depending on the circumstances, there may be continuing offences, substantial losses, concurrence with other offences or precautionary measures. Beyond the main penalty, the consequences can be serious:

• The obligation to make good the loss
• Seizure of assets and garnishment
• A ban on holding certain positions
• Loss of employment
• Damage to professional reputation
• Difficulties in dealings with banks, partners and the authorities
• Possible related cases for forgery, use of forged documents, money laundering or tax evasion

For precisely this reason, an accusation of embezzlement must not be taken lightly. Even where the accused believes themselves innocent, the way they react in the first few days can decisively influence the course of the case.

Embezzlement vs. fraudulent management

These offences are similar in their effects but legally distinct. An incorrect classification can lead to different defences, penalties and strategies:

A lawyer handling an embezzlement case will examine whether the conduct described by the investigators genuinely matches the elements of the offence, or whether the matter is in fact civil, commercial or disciplinary in nature.

Not every shortfall in the accounts amounts to embezzlement

In many companies, when discrepancies in money or goods come to light, the first reaction is an accusation of theft or embezzlement. But a shortfall in the accounts does not automatically mean a criminal offence. There may be alternative explanations:

• Inventory errors
• Incorrectly entered documents
• Goods damaged or lost unintentionally
• Lack of clear internal procedures
• Access by several people to the same assets
• Verbal approvals given by management
• Withdrawals made for company expenses
• Payments made without complete documentation, but in the company's interest
• Discrepancies between accounting records, stock management and IT systems

For an offence to exist, the judicial authorities must prove the elements set out by law, including intent. The defence must show, where appropriate, that the shortfall was not caused by unlawful appropriation or use, but by other circumstances.

Charges frequently brought alongside embezzlement

Embezzlement files rarely stand alone. Prosecutors often also examine related offences, particularly where there are altered documents, suspicious invoices or bank transfers. The most common are:

• Intellectual forgery and forgery of documents under private signature
• Use of forged documents
• Abuse of office and fraud
• Money laundering
• Tax evasion
• Bad-faith use of the company's assets or credit
• Setting up an organised criminal group
• Aiding or inciting embezzlement

For example, if the missing funds were covered up by false documents, charges may follow for forgery and use of forged documents. If the money was transferred through intermediary companies, money laundering. may come under scrutiny. And if the transactions affected tax returns, a suspicion of tax evasion. may also arise. This combination of charges makes the case more complex and calls for a carefully constructed defence strategy.

What should you do if you are accused of embezzlement?

1. Do not give statements without a lawyer. Even if you feel you can explain the situation quickly, a statement given badly can be used against you. In economic crime cases, wording matters - a detail put unclearly may be read as an admission, as intent or as a contradiction.
2. Gather the relevant documents. Contracts, job descriptions, internal procedures, e-mails, invoices, bank statements, stock management reports, approvals. Do not alter documents, do not delete messages and do not attempt to influence witnesses - such actions can make matters considerably worse.
3. Be clear about your exact procedural status. Are you a suspect, a defendant, a witness, or have you simply been invited in for a discussion? The rights and the risks differ. It helps to know in good time the stages of criminal proceedings and which stage you are at.
4. Work with your lawyer on a strategy. Sometimes the defence rests on the absence of intent; sometimes on the absence of the capacity required by law, on the absence of any loss, on the lack of any connection with the assets managed, or on the unlawfulness of certain evidence.

Discuss your case with a lawyer

When do you need a lawyer in an embezzlement case?

You need a lawyer as soon as you learn that a suspicion exists. Do not wait to be indicted: it is during the criminal investigation stage that evidence is gathered, statements are taken and the direction of the case takes shape. You should contact a specialist lawyer if:

• You have been summoned to the police or the prosecutor's office
• You have received a summons in an embezzlement case
• Your employer accuses you of shortfalls in the assets under your management
• A criminal complaint has been filed against you
• You have been asked to provide written explanations at work
• There is an internal audit attributing sums to you
• Documents or equipment have been seized
• You have learned that you are under investigation for economic offences
• You are a director and are being blamed for the use of company funds

The earlier a lawyer becomes involved in the case, the more mistakes that are hard to undo can be prevented.

The role of forensic accounting evidence in embezzlement cases

In many cases, the accounting expert report is decisive. It can establish whether there is any loss, how it was calculated, who had access to the money or assets, whether the documents tally and whether the shortfalls have an accounting explanation.

A serious defence scrutinises the expert report, its objectives and the documents examined. If the expert has left certain records out of account or has started from the wrong premises, the conclusions can be challenged. A lawyer can request additional objectives, a supplementary report or a counter-expert report, where appropriate.

What can the injured party do?

Embezzlement does not concern only the person accused. If you are an employer or a director and you have discovered shortfalls, a general complaint is not enough. You must document the loss, identify the persons who had access, preserve the evidence, review your internal procedures and avoid unfounded accusations.

A lawyer can help the injured party to file the criminal complaint, to join the proceedings as a civil claimant, to seek precautionary measures and to recover the loss.

Embezzlement in companies, fintech and crypto

In the modern economy, embezzlement no longer means simply money missing from the till. In technology, fintech or crypto companies, suspicions may concern access to digital wallets, transfers of virtual assets, the use of private keys, the operation of online accounts, international payments, tokens or user funds.

Such cases are harder to analyse, because they require an understanding of the technical and financial mechanisms involved: who had access, what authorisations were in place, how the transfers were carried out, which internal policies applied and whether the assets were used for personal benefit or in the interest of the project. BSA's experience in digital asset cases and financial disputes allows us to build defences tailored to these new situations.

Why Buju, Stanciu & Associates?

We provide assistance in embezzlement cases, business criminal law, economic offences and matters with a financial impact. Our team examines both the criminal side and the corporate law and accounting analysis of the situation.

In an embezzlement case, a defence cannot be built simply by citing legal provisions. One must understand the financial flows, the internal documents, the relationships between the parties, the role of the accused, the company's procedures and the way in which the loss has been calculated.

We provide assistance during the investigation stage, at hearings, in dealings with the criminal prosecution authorities, in the administration of evidence, in challenging precautionary measures and before the court.

Conclusion

An embezzlement accusation is serious and must be addressed immediately: it can affect your liberty, reputation, career, business and assets. At the same time, not every shortfall of money or goods amounts to a criminal offence - the difference between an accounting error, a poor administrative decision and a criminal act is established through evidence. If you are wrongly accused, do not try to resolve the matter on your own: do not give statements without a lawyer, do not alter documents and do not treat summonses as mere formalities.

Frequently asked questions