The fraudulent appropriation of funds or property by a person who was entrusted with them defines which crime?

• A. Fraud
• B. Embezzlement
• C. Larceny
• D. Theft

Answer: (B)

Embezzlement is about someone who is trusted with property or funds and then uses them for their own benefit in a fraudulent way. The defining element is the entrusted relationship combined with misappropriation. Because the person already has lawful possession or control, taking or converting what they handle for personal use qualifies as embezzlement, not just theft or fraud.

This differs from fraud, which centers on deceit to obtain property rather than a misused possession of property someone was trusted to manage. It also differs from larceny or theft, which involve taking property without permission or without a prior trusted relationship. A typical example is an employee who diverts company funds or cash from the register for personal use, even though they were entrusted with those funds.