Legal Question in Criminal Law in California

Items purchased with embezzled funds

If someone, in the state of California, embezzles funds from a non-profit organization of which she is treasurer (company based in Texas), then settles with the org to pay restitution, by selling off items purchased during her tenure as treasurer (during the period of embezzlement), could buyers be in danger of receiving stolen property? Please give any citations.


Asked on 5/05/03, 10:04 pm

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Items purchased with embezzled funds

One of the elements of the crime of receiving stolen property is that the recipient needs to know that the property was stolen. An unknowing buyer is not guilty of any crime, though in many instances the rightful owner could regain the item through legal proceedings.

Besides, from your question it sounds like only money was stolen, not the items themselves. Items which are purchased with stolen funds are not considered stolen, so I don't see a problem here.

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Answered on 5/05/03, 10:12 pm


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