Defined as a type of financial fraud, embezzlement is a statutory offense. This means that, depending on the circumstances, it can be a crime under state or federal law or both. What makes the difference is the amount of embezzled money or the value of the property. Still, since the definition depends on the state, the penalties vary as well. If you’ve read our embezzlement statistics and you’re worried your business might be in danger, consult with your lawyer.