CALIFORNIA PENAL CODE 503 PC – EMBEZZLEMENT LAWS

Embezzlement is governed by Penal Code § 503 PC and is defined as the fraudulent misappropriation of entrusted property by an individual. The severity of the charge depends on the value of the property involved. If the value exceeds $950.00, it is considered a felony, whereas if it is below that amount, it is classified as a misdemeanor.

Embezzlement falls under the category of white-collar crimes and theft offenses. It occurs when a person unlawfully takes property that has been entrusted to them by someone else. While it is commonly referred to as employee theft, it is important to note that embezzlement, as outlined by California Penal Code Section 503 PC, can be applied in situations where there is any unlawful appropriation of entrusted property.
“503.
Embezzlement is the fraudulent appropriation of property by a person to whom it has been intrusted.”

Source: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PEN&sectionNum=503.

WHAT DOES CALIFORNIA PENAL CODE §503 (EMBEZZLEMENT) PROHIBIT?

Penal Code 503 PC is the California statute that criminalizes the unlawful taking of property entrusted to you by someone else.

To secure a conviction, a prosecutor needs to demonstrate the following four elements:

• The property was entrusted to you by the owner.
• The owner entrusted you with the property based on trust.
• You fraudulently converted or used the property for your own benefit.
• Your intention was to deprive the owner of the use of the property.

It’s important to note that a prosecutor is not required to prove that the owner requested the return of their property, as this is not a necessary element of the crime.

In cases involving this statute, potential questions may arise regarding the interpretation of concepts such as the relationship of trust, fraudulent use, and intent to deprive.

EXAMPLE

Let’s say John works as a cashier at a retail store. As part of his job, he has access to the cash register and is entrusted with handling customers’ payments. Over time, John develops a scheme to embezzle money from the store. Instead of depositing the full amount of cash received into the register, he starts pocketing a portion of it for himself.

John carries out this fraudulent scheme for several months, consistently taking small amounts of cash each day. The store owner, unaware of John’s illicit activities, continues to trust him with the handling of customer payments.

Eventually, discrepancies in the store’s financial records are noticed during an internal audit. The missing cash and irregularities point to embezzlement. The store owner reports the suspicious activity to the authorities.

Upon investigation, it is revealed that John knowingly and intentionally diverted funds for personal gain, breaching the trust placed in him by the store owner. As a result, John may be charged with embezzlement under California Penal Code 503 PC. The specific charge, whether a felony or misdemeanor, would depend on the value of the cash he unlawfully appropriated.

PENALTIES, PUNISHMENT, AND SENTENCING

Embezzlement in California is considered a “wobbler” offense, which means it can be charged as either a felony or a misdemeanor depending on the circumstances of the case.

If convicted of the felony form, which involves property valued at over $950, a firearm, or an automobile, the potential penalties include up to three years in a state prison, a fine of up to $10,000, or both.

For the misdemeanor form of Embezzlement, the penalties may include up to six months in a county jail, a fine of up to $1,000, or both.

In summary, felony Embezzlement carries the possibility of up to three years in state prison, a fine of up to $10,000, or both, while misdemeanor Embezzlement may result in up to six months in a county jail, a fine of up to $1,000, or both.

DEFENSES

To defend against an embezzlement charge under 503 PC, you can assert various legal defenses. Some common defenses include:

• No fraudulent use: You can argue that you did not fraudulently use the property or money in question. This defense applies if you did not take undue advantage of someone or cause a loss by breaching a duty or confidence.
• Good faith belief in a right to property: If you genuinely believed that you had a right to the money or property, you may not be guilty of violating this law. The judge or jury will determine if your belief was reasonable based on the specific circumstances of the case, even if it turns out to be mistaken or unreasonable.
• No intent to deprive: Embezzlement requires intent to deprive the owner of their property or its use. Thus, if you can demonstrate that you did not have the intention to deprive the owner, it can be a valid defense. For example, if you took the property as part of a harmless prank, this defense may apply.

It’s worth noting that other defenses may arise if there was misconduct by law enforcement, such as entrapment or coercing a confession.

IMMIGRATION CONSEQUENCES

A conviction under 503 PC may result in negative immigration consequences. According to United States immigration law, certain types of criminal convictions can lead to deportation and being marked as inadmissible for non-citizens. This includes “aggravated felonies.” Therefore, being charged with felony grand theft embezzlement, and if the facts show that the felony is an aggravated felony, may lead to adverse immigration outcomes for non-citizens. If you do not have or know of an immigration lawyer, the Tabibnia Law Firm can refer you to one.

CAN A DEFENDANT GET A CONVICTION EXPUNGED?

If you are convicted of embezzlement, you may be eligible for an expungement under certain conditions:

• Successfully completing probation or serving a jail term, whichever is applicable.
• Even if you violate a probation term, it is still possible to have the offense expunged, but this decision would be up to the judge.

According to Penal Code 1203.4, an expungement releases you from most of the penalties and consequences associated with the conviction.

RELATED CRIMES

• Petty Theft – California Penal Code Section 484(a) PC
• Grand Theft – California Penal Code Section 487 PC
• Forgery – California Penal Code Section 470 PC
• Receiving Stolen Property – California Penal Code Section 496(a) PC
• Burglary – California Penal Code Section 459 PC
• Misappropriation of public funds – California Penal Code Section 424 PC
• Embezzlement/misappropriation by a public officer – California Penal Code Section 504 PC

SPEAK WITH CRIMINAL DEFENSE LAWYER FROM TABIBNIA LAW FIRM

If you are facing an Embezzlement charge in California, it is crucial to seek the help of an experienced criminal defense attorney as soon as possible to protect your rights and livelihood.

A skilled attorney like Cyrus Tabibnia can provide several benefits, including:

• Negotiating a plea bargain: He can work with the prosecution to potentially reduce the charge to a lesser offense, which can result in a more favorable outcome.
• Sentence reduction: He can advocate for a reduced sentence if you are convicted, potentially minimizing the impact on your life.
• Possible dismissal of charges: In certain situations, he may be able to build a strong defense strategy that could lead to the dismissal of the Embezzlement charges altogether.

Cyrus Tabibnia, an attorney at Tabibnia Law Firm, is well-versed in local courts and has extensive knowledge of the California criminal justice system. He can offer representation in Los Angeles and other Southern California cities.

If you or someone you know has been arrested or charged with Embezzlement, Cyrus Tabibnia can analyze the facts of your case and develop a tailored strategy to achieve the best possible outcome. You can contact him at 866-713-2159.