An employee takes funds from an employer to cover a gambling debt. What is the charge?

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

Answer: (A)

The situation hinges on funds that were entrusted to someone in a position of responsibility. When an employee handles employer money as part of their duties, that money is under their custody or control. Taking those funds to cover a gambling debt is converting property that was entrusted to them for personal use, which is the essence of embezzlement. It isn’t simply taking money without permission, because the person had access to and control over the funds in the course of their work, making the misappropriation a fraudulent use of property they were authorized to handle. The other crimes involve different elements—theft or larceny focus on taking property without rightful possession, and fraud centers on deception to obtain property—not the misuse of funds already in the offender’s control.