Few criminal accusations can damage a person’s reputation as quickly as allegations of embezzlement or grand theft. These cases often involve employees, executives, accountants, financial professionals, healthcare providers, and business owners who have spent years building careers based on trust. An accusation alone can place employment, professional licensing, and future opportunities at risk long before a case reaches trial.
Karpel Law Group represents clients throughout Encino, the San Fernando Valley, and Southern California who are facing allegations of corporate embezzlement, grand theft, and other financial crimes. As part of our White Collar Criminal Defense & Government Investigations practice, we help clients protect their rights, understand the allegations against them, and build a defense tailored to the facts of their case.
If you have learned that your employer is conducting an internal audit, investigators have contacted you, or you have already been arrested, early legal representation can make an important difference.
Although these terms are often used together, they describe different types of theft. The distinction matters because prosecutors must prove different elements depending on how a case is charged.
Embezzlement generally involves property or money that was legally entrusted to someone through a position of trust. The allegation is that the person later used that property for an unauthorized purpose. These cases frequently involve employees, bookkeepers, executives, partners, trustees, or anyone responsible for managing money or valuable assets.
Grand theft generally involves property valued above the legal threshold that was taken without permission. In many white collar cases, prosecutors allege grand theft by embezzlement, arguing that property worth more than $950 was taken by someone who had lawful access to it because of their job or professional relationship.
Whether a case involves accounting records, expense reimbursements, payroll, client trust accounts, inventory, or company credit cards, the prosecution must still prove every required element beyond a reasonable doubt.
The penalties depend on the value of the alleged loss, a person’s criminal history, and how prosecutors decide to file the case. Even before a conviction, an investigation alone may affect employment, business relationships, or professional licensing.
Allegation | Possible Consequences |
|---|---|
Misdemeanor grand theft | Up to 1 year in county jail, fines, restitution, and a criminal record. |
Felony grand theft | Potential prison sentence, substantial restitution, fines, and a felony conviction. |
Large financial loss allegations | Additional sentence enhancements or increased financial penalties may apply. |
For many clients, the collateral consequences are equally significant. A conviction may affect future employment, professional licenses, security clearances, immigration matters, and business opportunities. Those concerns are especially important for clients seeking defense against misconduct allegations affecting licensed professionals.
Many financial crime cases begin long before an arrest. An employer may discover accounting discrepancies during an audit, notice unusual banking activity, receive a complaint from another employee, or identify irregularities during a routine financial review.
Once concerns are raised, investigators may begin reviewing payroll records, expense reports, invoices, accounting software, emails, bank statements, surveillance footage, or electronic communications. In some cases, a business conducts its own internal investigation before law enforcement becomes involved.
If investigators contact you during this stage, the decisions you make can affect the entire case. Early representation through Pre-Charge & Investigative Defense may help protect your rights before prosecutors decide whether criminal charges should be filed.
No two cases are exactly alike. A successful defense depends on carefully reviewing the financial records, understanding the business relationship involved, and evaluating whether the evidence supports the prosecution’s allegations.
Common defense strategies may include:
Many white collar investigations rely heavily on electronic records rather than eyewitness testimony. When investigators seize computers, accounting software, cloud accounts, or business devices, questions about how that evidence was collected may become an important part of the defense. Those issues often overlap with Computer and Digital Device Seizure Defense.
People facing financial crime investigations often believe they can resolve the situation by explaining what happened. Unfortunately, well-intentioned decisions can sometimes make the situation more difficult.
Every investigation follows a different timeline. Some remain confidential for months, while others move quickly after an internal audit or law enforcement investigation begins. Seeking legal guidance early gives your attorney more time to understand the allegations and respond strategically.
Financial crime cases require more than reviewing police reports. They often involve accounting records, business practices, electronic communications, contracts, and financial transactions that must be analyzed carefully and placed into context.
Our attorneys begin by understanding how the allegations developed, what records investigators are relying upon, and whether the evidence supports the conclusions being drawn. Depending on the circumstances, we may review financial documents, interview witnesses, evaluate business policies, identify weaknesses in the prosecution’s evidence, and prepare the strongest defense available.
Some investigations remain in state court, while others expand into broader government investigations involving federal agencies. If that occurs, your defense strategy may also involve issues addressed in our Federal Criminal Defense & High-Stakes Litigation practice.
Encino is home to a diverse business community that includes healthcare practices, financial professionals, entertainment companies, real estate businesses, law offices, and family-owned companies. Allegations involving employee theft or misuse of company assets can arise in businesses of every size.
Karpel Law Group represents clients throughout Encino, Sherman Oaks, Tarzana, Woodland Hills, Studio City, Calabasas, and the surrounding San Fernando Valley. We understand that these cases often involve more than criminal allegations—they can also affect careers, professional reputations, and years of hard work.
If you are under investigation or have been charged with corporate embezzlement or grand theft, the actions you take today may affect the outcome of your case. Early legal representation provides an opportunity to protect your rights, preserve important evidence, and begin building your defense.
