- I rode a bike left derelict near Ueno station without permission to my house. I am questioned by a police officer of Ueno Police Station of the Metropolitan Police Department…
- I have been put in charge of accounting at work for a long time, and embezzled the company’s money 25,000,000 yen.
The embezzlement was exposed, and I was arrested by Kamata Police Station…
1. Embezzlement & Breach of Trust Case
Embezzlement and breach of trust cases have a common characteristic as property offense of betraying confidential relationship.
Regarding embezzlement, embezzlement, embezzlement in the pursuit of social activities, and embezzlement of lost property are provided in the Penal Code.
Concerning breach of trust, other than breach of trust set in the Penal Code, aggravated breach of trust targeting at the company’s directors, managers, etc.(Article 960 of the Companies Act) is also regulated by the Companies Act.
2. Embezzlement
A) Embezzlement
The crime of embezzlement is the crime of “embezzling” “property in his/her possession which belongs to another”(Article 252(1) of the Penal Code).
It is sometimes called “simple embezzlement” (in Japanese Tanjun ōryozai) to distinguish from “embezzlement on the pursuit of social activities” described below.
The statutory penalty of embezzlement is imprisonment with work for not more than 5 years.
There is a dispute over the significance of the act of “embezzling”.
Common belief and judicial precedents understand that all acts to put animus furandi (intent to illegal obtain) of trust into practice. Concretely speaking, the act of embezzling includes the act of using, disposing, or selling money and goods that the perpetrator keeps at the request of another
without permission of the another.
B) Embezzlement in the Pursuit of Social Activities
The crime of embezzlement in the pursuit of social activities is the crime of “embezzling” “property which belongs to another in the person’s possession” “in the pursuit of social activities”. (Article 235 of the Penal Code)
The statutory penalty of embezzlement in the pursuit of social activities is imprisonment with work for not more than 10 years.
The penalty of embezzlement in the pursuit of social activities is set heavier than that of simple embezzlement because the degree of infringement of the relationship of entrustment and trust with the victim in a case of embezzlement in the pursuit of social activities is more than in a case of simple embezzlement.
As concrete examples of embezzlement in the pursuit of social activities, there are the case where an employee of a company embezzles money from the company, or an employee sold goods that the employee is in charge of keeping without permission and pockets proceeds from the sale.
C) Embezzlement of Lost Property
The crime of embezzlement of lost property is the crime of “embezzling” “lost property, drift property or any other property which belongs to another person and is in no one's possession” (Article 254 of the Penal Code)
The statutory penalty of embezzlement of lost property is imprisonment with work for not more than 1 year or a fine of not more than 100,000 yen or a petty fine (penalty to coercively collect money of not less than 1,000 yen but not more than 10,000 yen).
“Property which belongs to another person and is in no one’s possession” means property that is out of an occupant without his/her intention and no one yet takes possession of.
Typical example of such property includes lost items and castaway.
As specific examples of embezzlement of lost property, there are the case of taking away a cellphone left on a train, using a bicycle that a theft left without permission, or opening and disposing a mail wrongly delivered.
3. Breach of Trust
A) Breach of Trust
The crime of breach of trust is the crime that a person who is in charge of the affairs of another, for the purpose of promoting his/her own interest or the interest of a third party, or inflicting damage on another, commits an act in breach of legal duty and causes financial loss to another (Article 247 of the Penal Code)
The statutory penalty of breach of trust is imprisonment with work for not more than 5 years or a fine of not more than 500,000 yen.
B) Aggravated Breach of Trust
The crime of aggravated breach of trust is the crime that when a director, executive officer, manager, etc., for the purpose of promoting such person's own interest or the interest of a third party or inflicting damage on a stock company, commits an act in breach of such person’s duties and causes financial damages to such stock company (Article 960 of the Companies Act).
The statutory penalty of aggravated breach of trust is imprisonment with work for not more than 10 years, a fine of not more than 10,000,000 yen, or both.
As compared to breach of trust under the Penal Code, the statutory penalty of aggravated breach of trust is set heavier.
As concrete examples of aggravated breach of trust, there is a case where a director of a bank, for the purpose of promoting the interest of a company that his friend runs, lent heavily to the company even though it nearly went bust and caused financial loss to the bank.
4. Summary of Embezzlement & Breach of Trust Case
| Charged Offense | Criminal Punishment/Statutory Penalty |
| Simple embezzlement (251 of the PC) |
Imprisonment with work for not more than 5 years |
| Embezzlement in the pursuit of social activities (253 of the PC) | Imprisonment with work for not more than 10 years |
| Embezzlement of lost property (254 of the PC) | Imprisonment with work for not more than 1 year, a fine of not more than 100,000 yen, or a petty fine |
| Charged Offense | Criminal Punishment/Statutory Penalty |
| Breach of trust (247 of the PC) |
Imprisonment with work for not more than 5 years or a fine of not more than 500,000 yen. |
| Aggravated breach of trust (960 of the Companies Act) | Imprisonment with work for not more than 10 years or a fine of not more than 10,000,000 yen. |
▼Examples of Consultation of Embezzlement in the Pursuit of Social Activities
- I embezzled money entrusted to me at the request of another. → Simple embezzlement, etc.
- I did not return a rental car by the due time and kept using it without permission. → Simple embezzlement, etc.
- A guardian of adult elected by a family court withdrew an adult ward’s deposit without permission. → Embezzlement
in the pursuit of social activities, etc.
~Defense in Embezzlement & Breach of Trust Case~
1. Consult Lawyer Who Is Good at Dealing with Embezzlement & Breach of Trust Case
If you are suspected of embezzlement or breach of trust, please consult a lawyer who is good at dealing with embezzlement and breach of trust case immediately.
You may be suspected of having involved in other crimes that you did not commit because the perpetrator often keeps committing a crime in embezzlement and breach of trust case.
Even in a case where the suspect admits the charge, it is important to defend in a consistent way after understanding the whole picture of the case.
A lawyer who is good at dealing with embezzlement and breach of trust case can understand the whole picture of the case and give adequate advice based on the flow and forecast of the case.
2. Early Out-of-Court Settlement in Embezzlement & Breach of Trust Case
The crime of embezzlement does not have the sentence to pay a fine. Therefore, there are only “acquittal”, “suspended sentence”, and “prison sentence” once indicted for embezzlement. It is important to reach an early settlement with the victim by apologizing and pay the damage to the victim in order to avoid prosecution. If the suspect settles the case out of court with the victim, the possibility to get a decision not to prosecute increases.
Asking a lawyer to negotiate the out-of-court settlement with the victim is recommended. If the perpetrator tries to negotiate with the victim, the parties may get emotional so that the negotiation would fail. On the other hand, a lawyer who has rich experience in the negotiation presents the suspect’s apologizing and remorse from the third person’s perspective, and carefully explains the merits and demerits of settling the case out of court to the victim. The lawyer, then, aims at reaching the settlement that convinces both the parties.
3. Prevent Physical Restrain in Embezzlement & Breach of Trust Case
If you are investigated by the police for embezzlement or breach of trust case, you may be arrested and detained.
Once arrested and detained, the physical restrain intends to be extended for a long period of time.
The prolongation of physical restrain causes the suspect fail to attend school or go to work.
A lawyer who is good at dealing with embezzlement and breach of trust case encourages the investigative authority to investigate the case without rein on the suspect. Where the suspect is already arrested and detained, the lawyer defends to release the suspect by persuasively explaining that there is no possibility that the suspect may destroy or conceal evidence and that the suspect may flee because he/she has family or regular occupation.
If you have a trouble in embezzlement and breach of trust case, please contact AICHI Criminal Case Law Firm.
You can receive the best advice from the lawyers who have rich experience in embezzlement and breach of trust case. The lawyers specializing in criminal and juvenile cases personally provide with “the free consultation”. We also provide for “the first interview service” that our lawyer goes to a detention cell where the suspect is detained to have an interview, at the shortest on the day when we receive an inquiry.
