As to a "crime", that would depend upon two issues...one, how the specifice embezzlement penal code in your state...and if the local District Attorney has the time and interest in such matters. Instead, I would suggest that both of you engage many of the country wide mediaiton services...some of which are also attorneys. Since it sounds like the LLC may continue in business, you may want to reconcile and mediate the issues...rather than think about "criminal activity".Shawn Jackson California Business Development Attorney.