Edwin Sutherland differentiated the white collar criminal from the outlaw. (Sutherland & Cressey, 269). In 1939, Sutherland coined the phrase “white collar crimes” as representing “crimes committed by persons of respectability and high social status in the course of their occupations. Embezzlement was one of the crimes that were later focused on in White-Collar Crime cases. Embezzlement occurs when a person fraudulently appropriates to his/her own benefit money or property entrusted to him/her by another without the effective consent of the owner, often associated with the misappropriation of money( Williams, 2006). Embezzlement is the type of crime that carries substantial costs, the victims of embezzlement suffers major effects, and the regulations and policing associated with embezzlement charges carry serious consequences. Embezzlement as a crime
Embezzlement is considered a crime regardless if the person keeps the personal property/monetary or transfers it to a third party. Originally embezzlement was not a crime because the thief had the right to possess the funds, so illegally using the funds was an element of larceny, which is also illegal, but considered a form of robbery, and could not be proven as embezzlement. The Courts determined that the question of whether embezzlement was a crime or not by considering the substantial control of the funds by the employee’s job title, job description, and the practices of that particular company(Infoplease,1994-2007). To reduce the chances of getting caught, embezzlers will sometimes skim small amounts of the money off the top over a particular amount of time so that the money will not be missed. The Internal Revenue Service requires that embezzlers include embezzled funds in their yearly income taxes, so if these funds are not reported; the embezzlers risk being later audited, and charged with tax evasion. After the individuals are charged, the arrest has to be investigated, and the crime of embezzlement may or may not be discovered. So the crime of embezzlement is most likely the only crime or charges that most embezzlers face in the course of their criminal actions/prosecution. Particular Embezzlement Case
One particular case involved an individual named Douglass Zuber. He was employed as a Real Estate Executive at Harvard Investments Inc. According to prosecutors, Zuber's scheme lasted about 7 years between 1999 and 2006 where he set up seven false venders through which he was able to bill the real estate investment firm for work that was never completed. During his testimony he said that he spend the money establishing a lavish lifestyle and purchased luxury residential properties and vehicles. He was indicted in 2008 for money laundering, theft and fraud that allegedly cost his employer $11 million. He was later found guilty and convicted of on one count of money laundering, one count of theft and one count of fraudulent schemes and artifices (Casacchia, 2008). He was later sentenced to six years in prison, several years of supervised release probation, and ordered to pay $6.2 million in restitution. It was also said that when authorities searched Zuber’s property they found a draft of a book Zuber was writing called Deeds of Trust-a how-to on embezzling funds from your employer (Casacchia, 2008). Victims of Embezzlement
Embezzlers are “trust violators” who deprive their victims of economic benefits and of the ability to trust others financially. (Crime and Justice, 1971: 247). It is a crime that impacts all levels of society, not just high level corporate players. The victims are financially drained, and sometimes blame themselves for not seeing the crime happening, their household economic situations are significantly impacted, they may have to sell their homes, and the institutions where the individual(s) that are employed and convicted of embezzlement often lose their respect and credibility. Most crimes go unreported and are...