Embezzlement is the fraudulent appropriation of property by a person to whom it has been intrusted.
Of Crimes Against PropertyEmbezzlement
Section § 503
Embezzlement happens when someone dishonestly takes property that was trusted to them.
embezzlement fraudulent appropriation entrusted property
Section § 504
This law states that any officer, deputy, clerk, or agent working for the state, county, city, or any organization who takes property that they control because of their job and uses it for anything outside their job duties in a dishonest way is committing embezzlement.
Every officer of this state, or of any county, city, city and county, or other municipal corporation or subdivision thereof, and every deputy, clerk, or servant of that officer, and every officer, director, trustee, clerk, servant, or agent of any association, society, or corporation (public or private), who fraudulently appropriates to any use or purpose not in the due and lawful execution of that person’s trust, any property in his or her possession or under his or her control by virtue of that trust, or secretes it with a fraudulent intent to appropriate it to that use or purpose, is guilty of embezzlement.
embezzlement fraudulent appropriation municipal officer
Section § 504
If someone has goods or property rented or under a purchase contract, and they hide or get rid of these items dishonestly to harm or cheat the owner, they are committing embezzlement.
Every person who shall fraudulently remove, conceal or dispose of any goods, chattels or effects, leased or let to him by any instrument in writing, or any personal property or effects of another in his possession, under a contract of purchase not yet fulfilled, and any person in possession of such goods, chattels, or effects knowing them to be subject to such lease or contract of purchase who shall so remove, conceal or dispose of the same with intent to injure or defraud the lessor or owner thereof, is guilty of embezzlement.
embezzlement fraudulent removal concealing goods
Section § 504
This law says that if you have an agreement allowing you to sell certain property and you must pay back a loan with the sale money, but you sell the property and keep the money instead of paying the lender, you're committing embezzlement. This is a crime where you wrongfully keep funds meant for someone else, and you can be punished for it.
Where under the terms of a security agreement, as defined in paragraph (74) of subdivision (a) of Section 9102 of the Commercial Code, the debtor has the right to sell the property covered thereby and is to account to the secured party for, and pay to the secured party the indebtedness secured by the security agreement from, the proceeds of the sale of any of the property, and where the debtor, having sold the property covered by the security agreement and having received the proceeds of the sale, willfully and wrongfully, and with the intent to defraud, fails to pay to the secured party the amounts due under the security agreement, or the proceeds of the sale, whichever is the lesser amount, and appropriates the money to his or her own use, the debtor shall be guilty
of embezzlement and shall be punishable as provided in Section 514.
security agreement debtor rights property sale
Section § 505
If someone is responsible for transporting items for others and decides to use those items in a way they're not supposed to, that person is committing embezzlement. It doesn't matter if they open the packaging or separate the items; the crime is in the unauthorized use.
Every carrier or other person having under his control personal property for the purpose of transportation for hire, who fraudulently appropriates it to any use or purpose inconsistent with the safe keeping of such property and its transportation according to his trust, is guilty of embezzlement, whether he has broken the package in which such property is contained, or has otherwise separated the items thereof, or not.
embezzlement personal property transportation for hire
Section § 506
This law makes it clear that anyone who is entrusted with someone else's property or money, like a trustee, banker, or lawyer, and uses it fraudulently for something other than its intended purpose, is committing embezzlement. It also specifies that contractors must use the money they receive to pay for labor or materials related to their contract, and using it for anything else is considered embezzlement.
Every trustee, banker, merchant, broker, attorney, agent, assignee in trust, executor, administrator, or collector, or person otherwise intrusted with or having in his control property for the use of any other person, who fraudulently appropriates it to any use or purpose not in the due and lawful execution of his trust, or secretes it with a fraudulent intent to appropriate it to such use or purpose, and any contractor who appropriates money paid to him for any use or purpose, other than for that which he received it, is guilty of embezzlement, and the payment of laborers and materialmen for work performed or material furnished in the performance of any contract is hereby declared to be the use and purpose to which the contract price of such contract, or any part thereof, received by the contractor shall be applied.
embezzlement fraudulent appropriation trustee responsibilities
Section § 506
This law addresses people involved in collecting someone else's debts or accounts, known as collectors. If a collector improperly uses someone else's money or property for their own benefit or hides it fraudulently, they will be considered a violator under Section 506. Such actions will lead to prosecution and punishment according to the law. Essentially, a collector must not abuse their role by taking advantage of the property or money they manage for others.
Any person who, acting as collector, or acting in any capacity in or about a business conducted for the collection of accounts or debts owing by another person, and who violates Section 506 of the Penal Code, shall be deemed to be an agent or person as defined in Section 506, and subject for a violation of Section 506, to be prosecuted, tried, and punished in accordance therewith and with law; and “collector” means every such person who collects, or who has in his or her possession or under his or her control property or money for the use of any other person, whether in his or her own name and mixed with his or her own property or money, or otherwise, or whether he or she has any interest, direct or indirect, in or to such property or money, or any portion thereof, and who fraudulently appropriates to his or her own use, or the use of any person other than the true owner, or person entitled thereto, or secretes that property or money, or any portion thereof, or interest therein not his or her own, with a fraudulent intent to appropriate it to any use or purpose not in the due and lawful execution of his or her trust.
debt collection fraudulent appropriation collector misconduct
Section § 506
If someone breaks certain laws about real estate sales contracts, they can be fined up to $10,000, sent to county jail for up to a year, or face prison time according to another legal section, or receive a combination of fine and jail time.
Any person who violates Section 2985.3 or 2985.4 of the Civil Code, relating to real property sales contracts, is guilty of a public offense punishable by a fine not exceeding ten thousand dollars ($10,000), or by imprisonment in a the county jail not exceeding one year, or by imprisonment pursuant to subdivision (h) of Section 1170, or by both that fine and imprisonment.
real property sales contracts Civil Code violations public offense penalty
Section § 507
If someone is trusted with property, like a bailee, tenant, or lodger, or has the power to sell or transfer it, and that person dishonestly takes it or its proceeds for their own use, or hides it with the intention to do so, they are committing embezzlement.
Every person intrusted with any property as bailee, tenant, or lodger, or with any power of attorney for the sale or transfer thereof, who fraudulently converts the same or the proceeds thereof to his own use, or secretes it or them with a fraudulent intent to convert to his own use, is guilty of embezzlement.
bailee tenant lodger
Section § 508
If you work for someone as a clerk, agent, or servant and you dishonestly take property that you are responsible for because of your job, you are committing embezzlement.
Every clerk, agent, or servant of any person who fraudulently appropriates to his own use, or secretes with a fraudulent intent to appropriate to his own use, any property of another which has come into his control or care by virtue of his employment as such clerk, agent, or servant, is guilty of embezzlement.
embezzlement fraudulent appropriation clerks
Section § 509
To commit embezzlement, you don't need to physically take something. It's enough if you're misusing or wrongfully controlling someone else's property that you're supposed to manage or look after.
A distinct act of taking is not necessary to constitute embezzlement.
embezzlement misuse of property wrongful control
Section § 510
This law states that if someone takes or misuses a debt instrument that can be transferred simply by handing it over, it's considered embezzlement. This applies even if the document isn't fully official or valid yet.
Any evidence of debt, negotiable by delivery only, and actually executed, is the subject of embezzlement, whether it has been delivered or issued as a valid instrument or not.
embezzlement evidence of debt negotiable by delivery
Section § 511
If someone is charged with embezzlement, they can defend themselves by proving they openly took the property, claiming they genuinely believed it was theirs, even if their claim was weak or invalid. However, this defense isn't valid if they kept someone else's property to settle debts or claims against that person.
Upon any indictment for embezzlement, it is a sufficient defense that the property was appropriated openly and avowedly, and under a claim of title preferred in good faith, even though such claim is untenable. But this provision does not excuse the unlawful retention of the property of another to offset or pay demands held against him.
embezzlement defense claim of title good faith claim
Section § 512
In California, if someone is accused of embezzling property, their intention to return it doesn't help their defense or reduce their punishment. This intention only matters if the property is returned before a formal charge or indictment for the crime is made.
The fact that the accused intended to restore the property embezzled, is no ground of defense or mitigation of punishment, if it has not been restored before an information has been laid before a magistrate, or an indictment found by a grand jury, charging the commission of the offense.
embezzlement property restoration defense
Section § 513
This law explains that if someone accused of embezzlement returns the stolen property or part of it before formal charges are filed, this act doesn't automatically defend them against the charge. However, it might lead the court to reduce the punishment as it sees fit.
Whenever, prior to an information laid before a magistrate, or an indictment found by a grand jury, charging the commission of embezzlement, the person accused voluntarily and actually restores or tenders restoration of the property alleged to have been embezzled, or any part thereof, such fact is not a ground of defense, but it authorizes the court to mitigate punishment, in its discretion.
embezzlement property restoration voluntary restoration
Section § 514
If someone is guilty of embezzlement in California, they will be punished as if they stole property of the same value. If the embezzled item is related to a debt, the value is what is owed. Embezzling public funds is a serious crime considered a felony, leading to a state prison sentence. Convicted individuals cannot hold public office in the future.
Every person guilty of embezzlement is punishable in the manner prescribed for theft of property of the value or kind embezzled; and where the property embezzled is an evidence of debt or right of action, the sum due upon it or secured to be paid by it must be taken as its value; if the embezzlement or defalcation is of the public funds of the United States, or of this state, or of any county or municipality within this state, the offense is a felony, and is punishable by imprisonment in the state prison; and the person so convicted is ineligible thereafter to any office of honor, trust, or profit in this state.
embezzlement punishment theft value comparison evidence of debt
Section § 515
If someone is found guilty of a felony under this chapter and the victim was an elderly or dependent person, this will be treated as an aggravating factor. This means it could lead to a harsher sentence according to specific sentencing rules.
Upon conviction of a felony violation under this chapter, the fact that the victim was an elder or dependent person, as defined in Section 288, shall be considered a circumstance in aggravation when imposing a term under subdivision (b) of Section 1170.
felony conviction elderly victim dependent person
