Section 153(a) of Title 18 of the United States Code defines embezzlement of the estate as knowingly and fraudulently appropriating property of the estate to the person’s own use. If a person embezzles, spends, or transfers any property or secretes or destroys any document belonging to the estate of a debtor, that person may be found guilty of embezzlement of the estate, and be fined, imprisoned not more than five years, or both.
Section 153(b) of Title 18 of the United States Code defines who can be prosecuted for embezzlement of the estate:
A person described in this subsection is one who has access to property or documents belonging to an estate by virtue of the person’s participation in the administration of the estate as a trustee, custodian, marshal, attorney, or other officer of the court or as an agent, employee, or other person engaged by such an officer to perform a service with respect to the estate.
Debtors need to be aware of their obligations and limits as to how they can use or transfer property of their bankruptcy estate. To learn more, you should talk with a Colorado bankruptcy attorney.
