Maryland’s Laws on Embezzlement and Misappropriation

Maryland’s laws concerning embezzlement and misappropriation are designed to address financial crimes that involve the unlawful taking or use of someone else's property. Understanding these laws is essential for both individuals and businesses operating in the state.

Embezzlement, according to Maryland law, is defined as the unlawful conversion of property that has been entrusted to an individual. This act can involve stealing funds or using property for unauthorized purposes. The severity of the charge can vary based on the amount of money or value of property involved.

In Maryland, embezzlement is typically classified as "theft" under Title 7 of the Maryland Criminal Code. The penalties for this crime can range from a misdemeanor to a felony, depending on the value of the embezzled property. For example, if the value is less than $1,500, it is generally treated as a misdemeanor, carrying potential penalties of up to 18 months imprisonment and/or a fine of up to $500. However, if the value exceeds $1,500, it becomes a felony, punishable by up to 15 years in prison and/or a fine of up to $15,000.

Misappropriation, while similar, usually refers to the improper use of funds legally held by an individual, especially in fiduciary roles, such as trustees or guardians. In cases of misappropriation, individuals have lawful possession of the property, but they use it in a manner that violates the terms of their trust or contract. This can include diverting funds for personal use or failing to fulfill obligations related to the funds.

Maryland law also encompasses specific statutes for certain professions, such as financial advisors and lawyers. Professionals found guilty of embezzlement or misappropriation may face not only criminal penalties but also professional repercussions, including loss of licenses and civil liabilities.

If someone is accused of embezzlement or misappropriation in Maryland, they have the right to defense counsel and a fair trial. Legal defenses may include lack of intent, evidence of repayment, or misunderstanding the situation. It is crucial for anyone facing such charges to consult with a qualified attorney to navigate the intricacies of Maryland’s criminal justice system.

Preventive measures can also be implemented by businesses to safeguard against embezzlement and misappropriation. These may include conducting background checks on employees, implementing regular audits, and establishing clear policies regarding fund management. Such practices not only help protect financial resources but also promote an ethical workplace culture.

In summary, Maryland’s laws on embezzlement and misappropriation emphasize the importance of adhering to legal and ethical standards in financial dealings. Awareness and understanding of these laws can aid individuals and businesses in safeguarding their assets and ensuring compliance with legal expectations.