What is Embezzlement in North Carolina?
In North Carolina, embezzlement is when a fiduciary knowingly and willingly takes, misapplies, or converts another person’s property to their own use. There are also other more specific types of embezzlement – such as those carried out by the fiduciary of a local government, state government, church, school, or charity.
Other specific types covered under North Carolina law include embezzlement by insurance agents, railroad officers, or surviving partners.
In this post we’ll go over what you need to know about embezzlement cases in Winston Salem.
There is no single way that the crime of embezzlement may be committed. But embezzlement charges can stem from the following types of conduct in North Carolina:
- Fraudulent use of entrusted checks.
- Unauthorized use of an entrusted debit or credit card.
- Willful misapplication of money collected as payment.
- Theft of property held in a trust account.
- Bank and wire transactions.
- Under-ringing, free bagging, and markdown fraud.
Embezzlement vs. Obtaining Property by False Pretenses
Embezzlement and obtaining property by false pretenses are mutually exclusive crimes. Thus, a person’s conduct must be only one or the other. The key questions is – how was the property initially acquired? For embezzlement to occur, the person must be entrusted with the property at the outset.
But for obtaining property by false pretenses, the person obtains the property through a false representation.
Keep in mind that it is possible to be charged with both embezzlement and obtaining property by false pretenses. However, a person can only be convicted of one or the other based on the same conduct.
| Embezzlement | The property initially must be acquired lawfully, pursuant to a trust relationship, and then wrongfully converted |
| Obtaining Property by False Pretense | The property must be acquired unlawfully at the outset, pursuant to a false representation |
Penalties for Embezzlement in Winston Salem
Embezzlement is a felony in North Carolina. If a person is convicted, they will be sentenced under one of two different classes of punishment. If the property taken is $100,000 or more, then it is a Class C felony.
Thus, the punishment carries a mandatory active sentence.
Alternatively, if the property taken is less than $100,000, then it is a Class H felony. Additionally, the punishment may carry an active, intermediate, or community sentence. Along with mitigating and aggravating factors, the court will take into account the individual’s prior record. The table below provides more detail.
| Amount Embezzled | Level Felony | Minimum Sentences |
| $100,000 or more | Class C | A 73-92 58-73 44-58 |
| Less than $100,000 | Class H | C/I/A 6-8 5-6 4-5 |
Embezzlement of state property and embezzlement by local/charitable officers or employees both carry a more serious punishment if the value of the property is less than $100,000. Thus, if convicted, the defendant would receive a minimum punishment as outlined below in North Carolina.
| Amount Embezzled | Level Felony | Minimum Sentences |
| $100,000 or more | Class C | A 73-92 58-73 44-58 |
| Less than $100,000 | Class F | I/A 16-20 13-16 10-13 |
Defenses to Embezzlement Charges in Winston Salem
It is important to consult an experienced attorney when determining the appropriate defenses to an embezzlement charge. Depending on the facts of the case, the following defenses may be available:
- The use of the property is permissive or authorized.
- The accounting is improperly performed.
- The crime is not properly charged.
- The investigation is based on inadmissible evidence.
- Defenses of alibi, duress, automation, accident, or mistake.
About the Author: W. Scott Harkey is a former senior white-collar special prosecutor and the managing attorney at Harkey Litigation. He is also a board certified specialist in North Carolina Criminal Law. Harkey has served as lead counsel for some of the most notorious fraud cases in modern North Carolina history – including hundreds of embezzlement cases throughout North Carolina. Click here to learn about some of the notable cases Harkey has handled. Among the cases featured is State v. Grandy, an embezzlement case Harkey successfully tried to a Guilford County jury that helped shape the law in North Carolina.
