Embezzlement Most Common Offense in Medium-Sized Companies

According to the Bavarian Legal and Administrative Report published in December 2015, a surprisingly high proportion of incarcerated criminals in Bavaria were serving sentences for embezzlement and theft—at a total of 20.9%, they represented the largest group of offenses. The figures are similar in the rest of Germany: in 2014, of 129,176 offenders in North Rhine-Westphalia, 30,979 were convicted of theft and embezzlement, amounting to almost 24%.

 

In a 2014 study on white-collar crime, 91% of executives of companies that had already suffered losses and 55% of previously unaffected companies feared theft and embezzlement by their own employees the most. The study “Global Economic Crime Survey 2014,” conducted among 5,000 companies of all sizes and industries worldwide, also reached the alarming conclusion that breach of trust and embezzlement accounted for 69% of crimes committed within companies. As a result, and due to significant internal losses, more and more company management teams feel compelled to engage the detectives of the Aaden Commercial Detective Agency Düsseldorf when suspicions of embezzlement against one or more employees can no longer be dismissed: +49 211 9874 011-0.

Damage Amounts in the Six-Figure Range in Investigations by Our Düsseldorf Detectives

Based on the high figures and percentages mentioned above, it can be assumed that delinquent employees must have a certain sense of security when committing offenses against their employer. Many are not even aware of any wrongdoing, let alone a criminal offense, especially since the “typical thief” often takes only small amounts or inconspicuous office items. Minor thefts often go unnoticed because they can be absorbed within the overall turnover of a medium-sized company; nevertheless, they are not trivial offenses, as demonstrated by cases frequently discussed in the media a few years ago, where employees were accused of taking individual deposit receipts or even a single sandwich.

 

Completely eliminating such minor property offenses in a company with many employees is unfortunately nearly impossible. However, there are also significantly more damaging cases of regular and meticulously planned embezzlement in medium-sized companies, which can sometimes result in losses amounting to millions and have, in investigations by our commercial detectives in Düsseldorf, already reached six-figure sums.

What Is Theft and What Is Embezzlement?

German Criminal Code Section 246 Embezzlement:

 

• (1) Whoever unlawfully appropriates a movable object belonging to another for themselves or a third party shall be punished with imprisonment of up to three years or a fine, unless the act is punishable by a more severe penalty under other provisions.

• (2) If, in the cases of subsection 1, the object was entrusted to the offender, the penalty shall be imprisonment of up to five years or a fine.

• (3) The attempt is punishable.

 

German Criminal Code Section 242 Theft:

 

• (1) Whoever takes a movable object belonging to another with the intent of unlawfully appropriating it for themselves or a third party shall be punished with imprisonment of up to five years or a fine.
• (2) The attempt is punishable.

 

The severity of the offense can be increased, among other factors, by commercial intent, organized group activity, or the nature of the stolen or embezzled item—if the object is of significance to science, art, or history, the offender faces a higher penalty. Particularly in light of these criminal consequences, many employees exposed by the Aaden Commercial Detective Agency Düsseldorf agree to sign a notarized acknowledgment of debt with a corresponding repayment declaration for the damages incurred, as it is ultimately at the discretion of the victim whether to report a criminal offense—many refrain from doing so in the event of an amicable settlement.

Put simply: theft = taking away, embezzlement = retaining

Distinguishing between theft and embezzlement is not easy at first glance if one is unfamiliar with legal terminology. However, there are significant differences with regard to the expected penalties and the precise legal foundations, which is why the commercial detectives of the Aaden Detective Agency Düsseldorf are happy to assist with a more precise distinction:

 

Theft involves an act that removes an object from another person’s custody and establishes new custody with the intent of unlawful appropriation—for example, taking a wallet from another person’s pocket. Embezzlement occurs when someone unlawfully retains an object belonging to another, meaning it is not “taken” but already “possessed” or used, and its return to the rightful owner is actively or passively refused. Under certain circumstances, this offense may also be fulfilled if ownership of the object is outwardly claimed—for example, when an employee passes office supplies to a third party even though they were only provided for a specific purpose.

 

While proven theft carries a penalty of up to five years of imprisonment, embezzlement is generally punishable by a fine or up to three years of imprisonment. However, if the object was explicitly entrusted to the offender for safekeeping, the penalty can also reach up to five years of imprisonment, as this may involve the misappropriation of funds, rent, or property—for example, when a supermarket cashier takes money entrusted to them from the cash register or when a property manager withholds rent instead of forwarding it to the property owner. In simple terms, theft involves the deliberate taking or removal of another’s property, whereas embezzlement involves withholding items from those to whom they rightfully belong. The Aaden Detectives Düsseldorf are, of course, available to provide court-admissible proof of both offenses: info@aaden-detektive-duesseldorf.de.

Embezzlement in the Company: How to Recognize It and What Can Be Done? Advice from Detectives

Despite the trust ideally placed in employees, it is important to remain vigilant within one’s own company in order to respond early if embezzlement occurs or if there are at least indications of suspicion—because, as experience shows, one offense rarely comes alone. In the examples mentioned above involving a deposit receipt and a single sandwich, strict action was taken to set a precedent. Whether this is necessary in relation to the amount of damage is a decision each business owner must make individually. However, when it comes to significant and ongoing property offenses to the detriment of the company, it is essential not only to take action against the perpetrator or perpetrators but also to demonstrate to other employees that such behavior will not be tolerated—the Aaden Detective Agency Düsseldorf can assist with this. In the “sandwich case,” the company concerned was focused on maintaining smooth operational processes and consistently prosecuting unlawful actions without exception. This is entirely legitimate, as a breakdown of trust between employer and workforce can lead to considerable tension and reduced productivity.

 

The Federal Labor Court also considers summary dismissal in such cases to be lawful due to the serious breach of trust but recommends a balancing of interests, as in the case of the embezzlement of a deposit receipt by an employee who had worked for the company for 38 years. However, in order to initiate legal prosecution, there is often a lack of court-admissible evidence or documentation of the criminal acts.

Case-Specific Advice on Property Offenses

If office supplies, electronic devices, delivery goods, or—in one of the most serious cases—larger sums of money entrusted to employees repeatedly disappear or are not used for their intended purpose, it is high time to engage the detectives of the Aaden Commercial Detective Agency Düsseldorf for a thorough review of operational processes: +49 211 9874 011-0.

 

Through surveillance of individual employees, embezzlement or misappropriation can be proven in a court-admissible manner by the Düsseldorf private detectives of Aaden. The exact approach in your specific case will be assessed individually during the assignment discussion, and you will of course be involved in our measures.

Aaden Detectives Düsseldorf

Münsterstraße 306

D-40470 Düsseldorf

Tel.: +49 211 9874 011-0

Fax: +49 211 9874 011-9

E-Mail: info@aaden-detektive-duesseldorf.de

Web: https://aaden-detektive-duesseldorf.de/en

 

CEO: Maya Grünschloß, PhD

Register Court: Amtsgericht Köln

Registration Number: HRB 83824