[dropcap]E[/dropcap]mbezzlement is an act of dishonestly withholding assets for the purpose of conversion (theft) of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes. Embezzlement is a type of financial fraud. Embezzlement is punished as a crime under the laws of Germany according to section 266 of the German Penal Code.

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Section 266 of the German Penal Code reads as follows:


Whosoever abuses the power accorded him by statute, by commission of a public authority or legal transaction to dispose of assets of another or to make binding agreements for another, or violates his duty to safeguard the property interests of another incumbent upon him by reason of statute, commission of a public authority, legal transaction or fiduciary relationship, and thereby causes damage to the person, whose property interests he was responsible for, shall be liable to imprisonment not exceeding five years or a fine.



Different Forms of Embezzlement
[spacing size=”15px”] [toggle title=”Private Sector (Corporations)”] Embezzlement usually occurs in the private sector and mostly to the detriment of corporations. Corporations have many agents acting on their behalf being entrusted with the management or moving of funds, such as directors, but also other employees who have access to the corporation’s funds.
[/toggle] [toggle title=”Public Sector”] Embezzlement also occurs in the public sector. That is the case if state officials use their administrative powers to their own benefit. Moreover, employees of publicly funded NGOs happen to embezzle funds or private donations for their own purposes.