Embezzlement Charges: What Business Owners and Employees Need to Know

June 11, 2025

Defining Embezzlement in North Carolina

Embezzlement in North Carolina involves the fraudulent misuse of property or money entrusted to someone in a position of responsibility. This differs from theft because the accused lawfully possessed the property before misappropriating it. Typical examples include employees handling company funds or managers accessing organizational resources. The key legal elements are trust, authority, and fraudulent conversion for personal use.

Employee Embezzlement and Penalties

Employees accused of embezzlement may have misused company funds, falsified financial records, or redirected resources. Charges vary based on the value involved: under $100,000 is a Class H felony, while over $100,000 becomes a Class C felony, with prison time ranging from months to over a decade. Convictions also carry financial restitution, damage to career prospects, and long-term stigma.

Defense Strategies and Legal Support

At Koontz Law, we defend employees by challenging intent, proving miscommunication, or demonstrating lack of control over funds. Sometimes honest mistakes are misinterpreted as criminal actions. Immediate legal representation helps preserve evidence, protect rights, and build a compelling defense that can mitigate or dismiss charges altogether.

Risks for Business Owners

Business owners aren't immune to embezzlement claims, especially in small businesses with loose internal controls. Even inadvertent accounting errors can trigger investigations. Koontz Law works with business owners to respond to allegations, guide them through audits, and protect both their personal and business assets during legal proceedings.

Prevention and Response Tips

Preventing embezzlement starts with strong internal systems—such as separating financial duties, conducting regular audits, and implementing reporting protocols. If embezzlement is suspected, both employers and employees should avoid hasty accusations and consult legal counsel first. Mishandling such cases can escalate the situation or lead to unintended liability.

Koontz Law: Your Trusted Legal Partner

Embezzlement cases can be complex and emotionally charged, but Koontz Law, PLLC provides trusted counsel for both business owners and employees. Attorney Brandy E. Koontz offers experienced, strategic guidance tailored to each client’s situation. Serving Davie County and the Piedmont Triad, our firm is ready to defend your interests and restore peace of mind. Contact us today for a consultation and let us help you take the first step toward resolution and peace of mind.

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