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Embezzlement or Larceny

Hank works in the accounting department at a large retailing operation. Hank was having lunch with one of the clerks who works under him and was discussing ways to prevent embezzlement. Soon Hank was discussing how he and the clerk could embezzle funds rather than how they could prevent embezzlement. Hank and the clerk decided they would use a particular scheme that Hank had read about recently. Several weeks later a computer vendor was visiting with Hank trying to sell Hank's company a new computer system. The vendor offered Hank a $5,000 bribe to get the company to buy the system. Hank accepted the bribe and received $5,000 in cash from the vendor. Hank then ran several test transactions with the vendor's system to see if his embezzlement scheme that he had discussed with the clerk would be detected on the vendor's new computer system. Hank could not tell from this test run whether his embezzlement scheme would work. For comparison, Hank then tried the same scheme on the current system at his company, but was unable to transfer any funds to his own account. Discuss the criminal liability at this point of Hank, the accounting clerk, and the corporation that Hank works for.

Solution Preview

There are many legal and criminal liability issues here but mostly with Hank and his actions.

Hank:

This is considered a white collar crime. The FBI says that white collar crime is illegal acts which are characterized by deceit, concealment, or violation of trust and which are not dependent upon the application or threat of physical force or violence. Within the white collar crime realm, Hank has committed larceny. Hank has intended to deprive the organization of property (money) permanently. This is the very definition of larceny. He has also attempted to deprive his organization economically which is another indication of larceny. Hank had the intention, the knowledge, and had direct intention to steal money from the organization. While it is not embezzlement at this time as money was not ...

Solution Summary

There are many legal and criminal liability issues here but mostly with Hank and his actions.

Hank:

This is considered a white collar crime. The FBI says that white collar crime is illegal acts which are characterized by deceit, concealment

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