Embezzlement vs. False Pretenses in North Carolina: What’s the Difference? 2025

Financial crimes, like embezzlement and obtaining property by false pretenses, are serious offenses in North Carolina that can result in severe penalties. Understanding embezzlement vs. false pretenses in North Carolina is a key first step for anyone facing either of these charges.

Embezzlement and false pretenses involve different legal definitions, penalties, and defenses. Exploring the nuances between these offenses can help you better navigate your case and understand what’s at stake under North Carolina law.

What Is Embezzlement?

Embezzlement occurs when someone entrusted with funds or property unlawfully takes those funds for personal use. This crime typically involves individuals in positions of trust, such as employees at financial institutions, caretakers, or financial advisors. One example would be an office manager diverting company funds into their personal account. Even when those funds are returned, the elements of a crime remain. If you’re facing such charges, consulting a Gastonia white collar crime lawyer can help you build a strong defense and navigate the legal process.

Under North Carolina law, embezzlement is a felony. The specific classification depends on the role of the accused and the value of the property stolen. If the amount exceeds $100,000, it is classified as a Class C felony. Lower embezzled amounts can lead to a Class H felony.

The courts often order defendants to pay restitution to the victims of this crime. For defendants, a strong defense may focus on disputing intent, ownership, or the accused’s role in managing the funds. White-collar crimes, like embezzlement, are often dependent on proving that the accused committed the acts with criminal intent, meaning any evidence that shows the contrary to be true can bolster the defendant’s case.

What Are False Pretenses?

False pretenses involve obtaining property, money, or services through deception. Unlike embezzlement, which requires a breach of trust, this crime centers on acts of misrepresentation or fraud. Common examples of this crime could include:

• Selling counterfeit goods. An example would be convincing someone to purchase a fake designer handbag by claiming it is genuine.
• Using a fake identity for financial gain. Applying for a loan with forged identification documents to receive money fraudulently is an act of illegal deception.
• Promising services under false claims. Charging a homeowner for roof repairs and disappearing without completing any work can lead to criminal charges and civil claims.
• Misrepresenting qualifications. Claiming to have professional credentials to secure a high-paying job or contract without having them is an act involving false pretenses.

In North Carolina, false pretenses are also prosecuted as felonies. Additional consequences may include fines, probation, and restitution to the victim. Successfully defending against false pretense charges may involve challenging the evidence or demonstrating a lack of intent to deceive.

What Are the Main Differences Between Embezzlement and False Pretenses?

The key distinction between embezzlement and false pretenses lies in the relationship to the property and the methods of misconduct. Embezzlement involves taking property entrusted to you, while false pretenses rely on deceiving someone to gain access to their property.

For example, an employee stealing funds from a workplace safe would be charged with embezzlement, whereas selling a fake antique for profit would fall under false pretenses. Both crimes involve an element of dishonesty and are prosecuted aggressively in North Carolina courts.

Despite these differences, both crimes carry serious penalties under North Carolina criminal law. A conviction for either can result in felony charges, lengthy prison sentences, court-ordered restitution payments, and lasting damage to your reputation. Even after a defendant serves out their sentence, the harm to their reputation can last indefinitely.

FAQs

Q: What Is the Difference Between False Pretenses and Embezzlement?

A: False pretenses involve intentionally deceiving someone to obtain money or property, typically through a lie or misrepresentation. Embezzlement, however, occurs when someone entrusted with money or property misuses it for personal gain. Both crimes involve dishonesty, but false pretenses require active deception, while embezzlement arises from breaching a position of trust or responsibility.

Q: Can You Be Charged With Both Embezzlement and False Pretenses?

A: Yes, it is possible to be charged with both embezzlement and false pretenses if the circumstances of the crime involve elements of both offenses. For example, if someone gains access to property through deception (false pretenses) and then misuses that property in violation of a position of trust (embezzlement), they could face charges for both crimes. Each charge addresses a different aspect of the unlawful conduct.

Q: What Is Considered Embezzlement in North Carolina?

A: In North Carolina, embezzlement occurs when someone entrusted with money or property, such as an employee or trustee, misappropriates it for personal use. This crime involves violating a position of trust and taking the funds or assets without permission. The severity of embezzlement charges depends on the value of the misappropriated property and the circumstances of the offense.

Q: What Are False Pretense Charges in North Carolina?

A: False pretense charges in North Carolina involve obtaining money, property, or services through intentional deception or misrepresentation. To prove this crime, prosecutors must show how the accused knowingly lied or used fraud to deceive another person, causing them to suffer financial loss. These charges often apply in cases of scams, fraudulent transactions, or identity theft.

Q: Is Obtaining Money Under False Pretenses a Crime in North Carolina?

A: Yes, obtaining money under false pretenses is a crime in North Carolina. This offense involves intentionally deceiving someone through false statements or representations to gain money or property. It is prosecuted as a form of fraud and can result in severe penalties, depending on the value of the property involved and the circumstances of the case.

Schedule Your Embezzlement Consultation Today

Being accused of embezzlement can lead to serious consequences for your personal life and professional career. Being charged with embezzlement can be an unsettling and stressful experience, but you have the right to fight your charges with the aid of a criminal defense attorney.

The Law Firm of Brent D. Ratchford has helped many former clients achieve a favorable outcome to their cases. We can take an effective and strategic approach to your case by examining the evidence being used against you for weaknesses or inconsistencies. The tactics used by prosecutors to secure guilty pleas do not intimidate our legal team. Let us protect your rights and further your goals in court by scheduling a consultation today.