Conversion of Funds by Fraud in Michigan
The fraudulent conversion of funds or property, often referred to as embezzlement or obtaining money by false pretenses, is a serious criminal offense in Michigan. These crimes involve a breach of trust where an individual unlawfully takes or uses money or property that was rightfully entrusted to them, or obtains it through deceit.
Understanding these laws is crucial for both potential victims and those accused, as the penalties can be severe, ranging from significant fines to lengthy prison sentences, depending on the value of the property and other circumstances.
The background of these laws stems from the need to protect property rights and uphold trust in financial dealings. Embezzlement specifically addresses situations where a person, by virtue of their position (such as an employee, agent, or trustee), has legitimate access to money or property but then misuses or steals it for personal gain.
False pretenses, on the other hand, focus on deception as the primary means of obtaining property. These offenses are categorized under “white-collar crimes” but carry significant consequences that can severely impact an individual’s life and future opportunities.
Here are key details and factual information regarding these offenses under Michigan Compiled Laws (MCL):
Embezzlement (MCL 750.174)
This statute covers individuals who, acting as an agent, employee, trustee, bailee, or custodian, fraudulently convert to their own use, or secrete with intent to embezzle, any money, goods, or other property entrusted to them.
Penalties vary based on value:
Less than $200: Misdemeanor, up to 93 days in jail, or a fine of up to $500 or three times the value (whichever is greater).
$200 to $1,000: Misdemeanor, up to 1 year in jail, or a fine of up to $2,000 or three times the value (whichever is greater).
$1,000 to $20,000: Felony, up to 5 years in prison, or a fine of up to $10,000 or three times the value (whichever is greater).
$20,000 to $50,000: Felony, up to 10 years in prison, or a fine of up to $15,000 or three times the value (whichever is greater).
$50,000 to $100,000: Felony, up to 15 years in prison, or a fine of up to $25,000 or three times the value (whichever is greater).
More than $100,000: Felony, up to 20 years in prison, or a fine of up to $50,000 or three times the value (whichever is greater).
Penalties can be enhanced if the victim is a vulnerable adult or a nonprofit/charitable organization, or if there are prior convictions.
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False Pretenses with Intent to Defraud (MCL 750.218)
This law addresses situations where a person, with intent to defraud or cheat, uses a false pretense to obtain money, personal property, or services.
Penalties are also value-dependent: The penalty structure mirrors that of embezzlement, with increasing severity based on the value of what was obtained, ranging from a misdemeanor for less than $200 to a felony with up to 20 years in prison for amounts over $100,000.
Source:
Larceny by Conversion (MCL 750.362)
This offense occurs when a person, to whom money or property has been delivered, embezzles or fraudulently converts it to their own use. This is distinct from simple larceny (theft) because the initial possession of the property was lawful.
The penalties for larceny by conversion also depend on the value of the property converted and generally follow the same penalty structure as embezzlement.
Source:
Oakland County, Michigan: Farmington Hills is located in Oakland County. Local ordinances generally do not supersede state criminal statutes like those for fraud or embezzlement. Instead, local law enforcement in Oakland County will enforce the Michigan Compiled Laws regarding these offenses.
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5 FAQs about Fraud or Embezzlement in Michigan
Q: What is the main difference between embezzlement and false pretenses?
A: Embezzlement involves taking money or property that was already entrusted to you due to a position of trust (like an employee handling company funds). False pretenses involve deceiving someone to get them to give you money or property.
Q: Can I go to jail for embezzling a small amount of money in Michigan?
A: Yes, even for amounts less than $200, you can face up to 93 days in jail, in addition to fines. The penalties increase significantly with the value of the embezzled property.
Q: What if I pay back the money I embezzled or obtained by fraud? Does that mean the charges will be dropped?
A: While paying restitution (paying back the money) can be a factor that might help in plea negotiations or sentencing, it does not automatically dismiss criminal charges. The prosecutor still has the discretion to pursue the case.
Q: What are the potential long-term consequences of a conviction for conversion of funds?
A: Beyond jail or prison time and fines, a conviction for these crimes results in a permanent criminal record. This can severely impact your ability to find employment, secure housing, obtain professional licenses, and even affect your reputation and future financial opportunities.
Q: Are these crimes considered felonies or misdemeanors in Michigan?
A: Both embezzlement and false pretenses can be charged as either misdemeanors or felonies in Michigan, depending primarily on the monetary value of the funds or property involved. Generally, if the value is over $1,000, it becomes a felony.
Komorn Law
When facing accusations of conversion of funds by fraud or embezzlement, having experienced legal representation is critical. Komorn Law, established in 1993, has a proven track record and extensive experience fighting cases from the district to federal court systems.
Attorney Michael Komorn and his team are known for their aggressive approach and mature understanding of the trial and appeals process, ensuring clients receive a robust defense. When you’re ready to hire a lawyer who hates to lose, call Komorn Law at (248) 357-2550.
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Areas of Service
We fight for our clients throughout the State of Michigan and Northern Ohio.
Here are some court contacts we frequently handle cases.
Oakland County
If you are facing any legal charges in Oakland County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:
- Telephone Number: (248) 858-0344
- Address: 1200 N Telegraph Rd, Department 404, Pontiac, MI 48341-0404
- Website:
Oakland County 6th Judicial Circuit Court
Macomb County
If you are facing any legal charges in Macomb County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:
- Telephone Number: (586) 469-5150
- Address: 40 N. Main Street, Mt. Clemens, MI 48043
- Website:
Macomb County 16th Judicial Circuit Court
Wayne County
If you are facing any legal charges in Wayne County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information for the Third Circuit Court (Wayne County):
- Telephone Number (Civil/Family): (313) 224-5510
- Telephone Number (Criminal): (313) 224-5261 or (313) 224-2503
- Address (Civil/Family): 2 Woodward Avenue, Detroit, MI 48226
- Address (Criminal): 1441 St. Antoine, Detroit, MI 48226
- Website:
https://www.3rdcc.org/
Kent County
If you are facing any legal charges in Kent County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:
- Telephone Number: (616) 632-5220
- Address: 180 Ottawa Avenue NW, Grand Rapids, MI 49503
- Website:
Kent County
Traverse County
If you are facing any legal charges in Traverse County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information for the 13th Circuit Court (which includes Traverse County):
- Telephone Number: (231) 922-4701
- Address: 328 Washington Street, Suite 300, Traverse City, MI 49684
- Website: Traverse City 13h Circuit Court
Monroe County
If you are facing any legal charges in Monroe County and need to hire an attorney, call our Office (248) 357-2550. If you need to contact the court, here is the information:
- Telephone Number: (734) 240-7020
- Address: 106 E First Street, Monroe, MI 48161
- Website: Monroe County 38th Circuit Court
