EMBEZZLEMENT, in statute law, a form of theft, which is distinguished from the ordinary crime of larceny in two points:—( ) It is committed by a person who is in the position of clerk or servant to the owner of the property stolen; and (2) the property when stolen has been received from a third person and has not reached the possession of the master, the owner. The definition of embezzlement as a special form of theft arose out of the difficulties caused by the legal doctrine that to constitute larceny the property must be taken out of the possession of the owner. Servants and others were thus able to steal with impunity goods entrusted to them for their masters. A statute of Henry VIII. (1529) was passed to meet this case, which was not covered by the common law.
Other statutes have been passed from time to time, but the law now in force is the Larceny Act 1916, which by ss. 16 to 19 deals with this offence.
By that act every person who being a clerk or servant or person employed in the capacity of a clerk or servant fraudulently em bezzles the whole or any part of any chattel, money or valuable security delivered to or received or taken into possession by him for or in the name or on the account of his master or employer : or being employed in the public service of the sovereign or in the police of any place whatsoever embezzles or in any manner fraudu lently applies or disposes of for any purpose whatsoever except for the public service any chattel, money or valuable security en trusted to or received or taken into possession by him by virtue of his employment : or being appointed to any office or service by or under a local marine board fraudulently applies or disposes of any chattel, money or valuable security received by him for or on account of any local marine board or for or on account of any other public board or department, for his own use or any use or purpose other than that for which the same was received by him; or fraudulently withholds, retains, or keeps back the same, or any part thereof, contrary to any lawful directions, is guilty of felony and on conviction thereof liable to penal servitude for 14 years, and in the case of a clerk or servant, if a male under the age of 16 years, to be once privately whipped in addition to any other punishment.
Again every person who, being an officer of the Post Office, steals or embezzles a postal packet in course of transmission by post shall be guilty of felony and on conviction thereof liable, if the postal packet contains any chattel, money or valuable security, to penal servitude for life : in all other cases to penal servitude for seven years.
An officer or servant of the Bank of England or of the Bank of Ireland, who secretes, embezzles, or runs away with any bond, deed, note, bill, dividend warrant, warrant for the payment of any annuity, interest or money, security, money or other effects of or belonging to the Bank of England or Bank of Ireland and en trusted to him or lodged or deposited with the Bank of England or Bank of Ireland, or with him as such officer or servant, is guilty of felony and on conviction thereof liable to penal servitude for life.
The person charged must be one who is acting under and bound to obey the orders of the owner of the property, although his em ployment need not be permanent. A general deficiency in accounts is not sufficient, but it must be proved that a specific sum of money has been embezzled, just as in larceny proof of the theft of a specific article is necessary. Difficulties sometimes arose where the embezzler had an interest in the property taken, and this was first dealt with by the Larceny Act 1868; now, by s. 40 (4) of the act of 1916, if any person, who is a member of any co partnership or is one of two or more beneficial owners of any property, embezzles any such property of or belonging to such co partnership or to such beneficial owners he is liable to be punished as if he had not been or was not a member of such co-partnership or one of such beneficial owners. Again if on the trial of any in dictment for embezzlement it is proved that the defendant stole the property in question, the jury may find him guilty of stealing, i.e., larceny.
Under certain circumstances justices may deal summarily with some cases of embezzlement, e.g., by a clerk, a servant or postal official (Criminal Justice Act 1925). See also CONVERSION and