The financial risk of pleading guilty to embezzlement

On Behalf of | Jan 21, 2025 | Embezzlement

Those accused of complex financial crimes often choose to plead guilty. If an employer accuses a worker of embezzlement, they may feel like a guilty plea is the only viable solution.

They hope to limit their losses and move on with their lives as quickly as possible. While pleading guilty to embezzlement charges can protect people from the expense of a trial, their expedient solution comes with its own set of financial consequences.

A guilty plea to embezzlement charges can lead to more consequences than people expect.

The courts may order restitution

The first long-term consideration professionals facing embezzlement charges must address is the likelihood of restitution. It is standard practice for the courts to order restitution in cases where criminal activity has had clear economic consequences. The party accused of embezzlement may have to compensate their employer for the full value of the resources allegedly diverted through the embezzlement scheme.

An employer could sue after a conviction

The other potential source of financial hardship after pleading guilty to embezzlement charges is the risk of a lawsuit. Businesses often seek to recover losses through any legal means possible.

After the conviction of a worker for a financial crime, the company may have grounds to pursue financial compensation from that worker. A lawsuit could result in an order to repay the business even if the courts declined to order restitution previously.

Those consequences are in addition to fines and court costs. Defendants who plead guilty also have to consider the conviction turning up when prospective employers conduct a background check on them in the future.

Choosing to fight back against embezzlement charges and other white-collar criminal accusations may help people protect their reputations. A successful defense strategy may also eliminate the potentially life-altering financial consequences of an embezzlement conviction.

FindLaw Network
Gary Jay Kaufman
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