What is the difference between larceny and embezzlement?

The major difference between larceny and embezzlement is the way in which the property changes hands. With larceny, the property is carried away; it was never in the possession of the perpetrator.

With embezzlement, however, the perpetrator has lawfully possessed the property, but then has converted it into his/her own property.

The following example illustrates the difference:

A man walks onto a construction site and takes a hammer and goes home. He has committed larceny, because he has taken someone else’s property away, with the intent never to return it.

A construction worker on that same site, who uses the hammer every day, puts it in his pocket at the end of the day and takes it home. He has committed embezzlement, because it was in his possession to use while he worked on the site, but when he took it off the site, he converted it into his own property.

Case Studies: Understanding Larceny and Embezzlement

Case Study 1: Larceny

Sarah, a customer at a local store, notices a wallet left unattended on the counter. Seizing the opportunity, she quickly grabs the wallet and leaves the store without paying for it. In this case, Sarah has committed larceny because she took someone else’s property without their permission and carried it away with the intent to keep it for herself.

Case Study 2: Embezzlement

John is a trusted accountant for a large company. Over time, he starts diverting funds from the company’s accounts into his personal bank account. By using his authorized access to the company’s finances, John converts the funds into his own property. In this case, John has committed embezzlement because he lawfully possessed the company’s property and then misappropriated it for personal gain.

Case Study 3: Larceny from a Vehicle

Mary had been involved in petty thefts throughout her life, but her criminal activities took a darker turn when she discovered a parking lot notorious for leaving valuable items unattended in vehicles. This parking lot had gained a reputation for being a hotspot for car break-ins, as many people would leave their belongings inside their cars while they quickly ran errands or went shopping.

Case Study 4: Embezzlement at a Non-Profit Organization

David is a financial officer at a non-profit organization dedicated to helping underprivileged children. He has access to donation funds and decides to siphon off a portion of these funds into his personal account. Despite having lawful possession of the funds due to his position, David converts the money for his personal use, making it a case of embezzlement.