What is embezzlement of money?

Embezzlement of money is a punishable act prescribed by law. In essence, it is a criminal offense directed against the right of personal property. In simple terms, it is an act resembling theft, since the perpetrator embezzles, that is, takes money that does not belong to them. The difference from theft is that the offender does not need to take (steal) the money from someone else. In the case of embezzlement, the money has come into the offender’s possession in some way (usually by virtue of their position) and the offender simply keeps it without being entitled to it. Embezzlement of money may be committed against a private company or against the State. One of the most notorious cases of embezzlement of money in Greece is the Koskotas scandal.

According to Article 375 of the Penal Code (PK), which provides the definition of embezzlement, anyone who unlawfully appropriates a movable thing belonging (wholly or partly) to another, which has come into their possession in any way, is punished with imprisonment of up to two years; and if the object of the embezzlement is of particularly great value, with imprisonment of at least one year. The law distinguishes the severity of the penalty according to the value of the thing embezzled. Thus, if the total value exceeds the amount of EUR 120,000, a sentence of imprisonment (felony) of up to 10 years is imposed on the offender; conversely, if the embezzlement concerns a thing of trifling value, it is punished with a monetary penalty or with imprisonment of up to six months, criminal prosecution is initiated only upon the formal complaint of the injured party, and in some cases the court may even deem the act unpunishable.

Description of the offense

The elements required for the commission of embezzlement are the following:

• unlawful appropriation
• a movable thing belonging (wholly or partly) to another (e.g. the withdrawal of money from a joint bank account does not constitute embezzlement, since from the moment of deposit the bank acquires ownership of the money and, as custodian, has the obligation to return it to whichever account holder requests withdrawal; nor does the buyer’s delay in paying the price under a sale with retention of title constitute embezzlement, unless the seller has previously withdrawn from the contract of sale)
• the thing has come into the offender’s possession in any way (even by means of a criminal act)

Embezzlement may be committed by anyone. By way of exception, specific qualities must exist in the person of the offender when the object embezzled has been entrusted to them:

• by reason of necessity or of their capacity as agent (e.g. a lawyer collects from the opposing insurance company the amount awarded as pecuniary compensation for moral damages, with the obligation to remit it to their client) or as guardian (e.g. the guardian of a minor) or as curator of the injured party (e.g. the curator of a vacant inheritance) or as sequestrator (e.g. the sequestrator in the case of provisional attachment) or as administrator of another’s property (e.g. the manager of a limited liability company).

The offender must know that the movable thing they hold and appropriate belongs to another, and must intend to unlawfully appropriate it.

Embezzlement against the State – Local Authorities – Public-Law Legal Entities

When the offense is directed against the State, Local Government Organizations and public-law legal entities, the Law “On the increase of penalties for embezzlers of the State” (Law 1608/1950) applies. It is characteristic that, according to this law, “if particularly aggravating circumstances concur, especially if the offender has continued the commission of the offense over a long period of time or if its object is of particularly great value”, this may attract the penalty of “life imprisonment” (Article 1 of Law 1608/1950).

Embezzlement of a thing of trifling value

Finally, if the theft or embezzlement concerns a thing of trifling value, it is punished with a monetary penalty or with imprisonment of up to six months. However, if the act was committed out of necessity for the immediate use or consumption of the object of the theft or embezzlement, the court may deem the act unpunishable. (Article 377 para. 1 of the Penal Code)

• See also article Defamation
• See also article Bodily Harm
• See also article Narcotics
• See also article Fraud
• See also article Forgery
• See also article Negligent Homicide
• See also article Tax Evasion

FREQUENTLY ASKED QUESTIONS ON EMBEZZLEMENT – LAWYER

1. What sentence do I face for embezzlement of money?

The basic form of the offense (Article 375 of the Penal Code) is punishable by imprisonment of up to two years, while if the object is of particularly great value, by imprisonment of at least one year. When the value exceeds EUR 120,000, the penalty rises to imprisonment (felony) of up to ten years. For embezzlement against the State or public-law legal entities, Law 1608/1950 applies, with a stricter framework. However, the final sentence depends on many factors: the quality and completeness of the indictment, the existence of mitigating circumstances (Article 84 of the Penal Code), prior return of the money, and a clean criminal record. Suspension or conversion of the sentence is often achieved.

2. How can the sentence be reduced or suspended?

Significant mitigation is brought about by active repentance: returning the amount to the injured party before a final judgment is issued may even lead to extinction of criminal liability in certain forms of the offense, or to substantial reduction. Mitigating circumstances of prior law-abiding life, subsequent good conduct, sincere repentance and non-base motives are invoked. Where the sentence does not exceed three years, suspension is generally granted (Article 99 of the Penal Code), while conversion into a monetary penalty or community service is provided for (Article 80 of the Penal Code). For a thing of trifling value, the court may even deem the act unpunishable.

3. What should I do if I am summoned for preliminary investigation or to give a defense statement?

From the very first moment a summons, criminal complaint or witness summons concerning suspected commission is received, the presence of a lawyer is critical. The defendant has the right to silence, the right of access to the case file, and the right to submit a written memorandum instead of an oral defense statement. Hasty answers, admissions without legal guidance, or handing over documents without review can irreparably harm the case. The right strategy at the first stage often shapes the outcome of the entire trial, since this is where the defendant’s version, which the court will assess, is recorded.

4. Is there a chance to avoid conviction altogether?

Yes, in many cases. Embezzlement requires strict elements: a movable thing belonging to another, lawful possession by the offender, and intent of unlawful appropriation. Many cases collapse because they actually concern a civil dispute (delay in payment, disputed accounts, unsettled relations) rather than a criminal offense. The statute of limitations, the lawfulness of the evidence, the existence of a formal complaint where required, and the identity of the holder of the money are also examined. In embezzlement from a joint account, or in a sale with retention of title without withdrawal from the contract, the objective elements of the offense are not established.

5. How long does an embezzlement case last in court?

The total duration depends on the magnitude of the amount and the nature of the injured party. The pre-trial phase (preliminary investigation, main investigation, referral order) usually lasts from several months to one or two years. The trial at first instance may take place before the Three-Member Misdemeanor Court or before the Single-Member/Three-Member Court of Appeals for Felonies when the case involves a felony. An appeal follows, and possibly cassation before the Areios Pagos. Overall, a case unfolds over two to five years, with adjournments and interruptions. During this period, the defendant is generally at liberty.

6. What is the lawyer’s role in an embezzlement case?

Our office undertakes the defense from the pre-trial phase through to the final hearing. We study the case file, identify weaknesses in the prosecution’s case, draft memoranda, prepare defense witnesses and raise standalone pleas for mitigating circumstances, suspension or conversion of the sentence. We negotiate with the injured party where their satisfaction and the extinction of criminal liability are possible. We appear at all stages, from the defense statement up to the Areios Pagos. With many years of experience in criminal law and particularly in offenses against property, the law firm ZIAMPARAS D. & ASSOCIATES builds a strategy tailored to the specifics of each case.