Embezzlement is characterized by the misappropriation of funds or property by a person who was entrusted with it. There must be a fiduciary relationship between the parties, and the individual must have been given lawful possession of the assets before converting them for personal use. In contrast, theft involves taking someone’s property without permission and with intent to deprive them of it permanently.
For example: A treasurer of a club who diverts funds into his personal account has committed embezzlement, whereas someone who pickpockets a wallet has committed theft.