NCJ Number
82271
Date Published
1981
Length
154 pages
Annotation
A study of embezzlement examines the dimensions of the offense, how specific cases of embezzlement have been uncovered, what happens to embezzlers, and how potential victims can protect themselves.
Abstract
Embezzlement is the fraudulent appropriation of property by a person to whom it has been entrusted. The crime directly affects the whole population: an American Management Association report estimates that 15 percent of the retail price of merchandise is meant to cover nonviolent crimes, particularly employee dishonesty, which accounts for 30 percent of all bankruptcies. Embezzlers may be people of any type; they frequently steal because they conceive of themselve s as having a financial problem that is nonsharable and are aware that the problem can be resolved by violation of a position of financial trust. Theft becomes easier because many employers, especially in small- and medium-sized businesses, neglect to take precautions to protect their interests. Examples illustrate the wide variety of possible scams and show that the perpetrators frequently receive light sentences. To protect against embezzlement, the employer must realize that employees are human, communicate effectively with employees, define the terms of the employee-employer relationship from the beginning, and perfect a system of internal controls. Employers should consider the purchase of liability insurance, even if employees may be offended. A competent accountant is also an effective safeguard against embezzlement. A major obstacle to prevention of embezzlement is the fact that embezzlers are rarely prosecuted, convicted or sentenced. Some reference notes are included.