An employee takes money from employer to cover a gambling problem. He is charged with what?

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

Answer: (C)

Embezzlement happens when someone is trusted with another person’s money or property and uses it for their own benefit. An employee who handles the employer’s funds and then takes some of that money to cover a gambling problem is transferring property they were entrusted with into their own use. That trusted position and conversion of funds to personal use is exactly what characterizes embezzlement.

This isn’t simply taking money without permission (theft or larceny) because the employee had lawful possession or control of the funds through their job, and the misappropriation occurs from that position of trust. Fraud involves deception to obtain money, which isn’t the core issue here unless lies were used to obtain or cover up the funds; the key element is the wrongful appropriation of entrusted funds for personal use.