New York State Private Investigator Practice Exam

What is embezzlement?

1. The theft of property from public places

2. Fraudulent appropriation of money by a fiduciary

3. Accepting bribes in exchange for information

4. Unauthorized possession of company assets

The correct answer is: Fraudulent appropriation of money by a fiduciary

Embezzlement is specifically defined as the fraudulent appropriation of money or property that has been entrusted to someone's care, often in a fiduciary relationship. This means that an individual in a position of trust, such as an employee or official, illegally takes or uses funds or assets for their personal gain rather than for the intended purpose. The choice that accurately represents this definition is the option regarding fraudulent appropriation by a fiduciary. Employees or agents who are entrusted with the handling of another's finances or property, such as accountants or corporate officers, are typically the ones who commit this crime. In contrast, the other choices describe different types of crimes or misconduct. The theft of property from public places does not necessarily involve a fiduciary relationship and can refer to general theft or larceny. Accepting bribes for information pertains to corruption rather than the misappropriation of funds one has been trusted with. Similarly, unauthorized possession of company assets could relate to theft or misuse but doesn't capture the element of fraud and trust inherent in embezzlement. Thus, the definition provided in the correct answer encompasses the key aspects of trust and betrayal that are central to embezzlement.