For any business, malfeasance is a wrongful act that causes great harm to its finances and regular operations. There are different forms of this crime, including embezzlement, and each form has a specific penalty in California. This type of crime causes thousands of dollars in losses, a loss of reputation and a loss of trust within the company.
The definition of malfeasance
Malfeasance is the intentional act of neglecting a contracted duty to cause damage to another party. It occurs when a professional agrees to perform a service but knowingly causes injury to a person or company and disrupts its business operations. Common forms of malfeasance are theft, bribery, embezzlement and vandalism. If a contract is made but the terms are not fulfilled, the other party has the right to file a legal complaint.
The act of embezzlement
Embezzlement is an intentional violation of a company’s rules and of anti-theft laws. An employee withdraws money from an organization that is entrusted to him or her for safeguarding. Employees may forge checks using an employer’s name, write incorrect amounts in the accounting records or other practices.
Embezzlement as malfeasance is a felony that is punishable by a few years in prison or a fine of thousands of dollars. In addition, a company has to reorganize its staff after an incident and could spend years recovering from the loss.
Malfeasance is an act of wrongdoing that is committed deliberately to harm another person or an organization of people. Embezzlement is the most common form of malfeasance that causes significant monetary loss to a company and results in severe penalties to the criminal.