THE MICHIGAN PENAL CODE (EXCERPT) Act 328 of 1931

750.174 Embezzlement by agent, servant, or employee, or trustee, bailee, or custodian; penalty; prima facie proof of intent; enhanced sentence based on prior convictions; consecutive sentence; conditions; definitions. Sec. 174.

(1) A person who as the agent, servant, or employee of another person, governmental entity within this state, or other legal entity or who as the trustee, bailee, or custodian of the property of another person, governmental entity within this state, or other legal entity fraudulently disposes of or converts to his or her own use, or takes or secretes with the intent to convert to his or her own use without the consent of his or her principal, any money or other personal property of his or her principal that has come to that person's possession or that is under his or her charge or control by virtue of his or her being an agent, servant, employee, trustee, bailee, or custodian, is guilty of embezzlement. (2) If the money or other personal property embezzled has a value of less than $200.00, the person is guilty of a misdemeanor punishable by imprisonment for not more than 93 days or a fine of not more than $500.00 or 3 times the value of the money or property embezzled, whichever is greater, or both imprisonment and a fine. (3) If any of the following apply, the person is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $2,000.00 or 3 times the value of the money or other property embezzled, whichever is greater, or both imprisonment and a fine: (a) The money or other personal property embezzled has a value of $200.00 or more but less than $1,000.00. (b) The person violates subsection (2) and has 1 or more prior convictions for committing or attempting to commit an offense under this section or a local ordinance substantially corresponding to this section. (c) The person violates subsection (2) and the victim is a nonprofit corporation or charitable organization under federal law or the laws of this state. (4) If any of the following apply, the person is guilty of a felony punishable by imprisonment for not more than 5 years or a fine of not more than $10,000.00 or 3 times the value of the money or other property embezzled, whichever is greater, or both imprisonment and a fine: (a) The money or other personal property embezzled has a value of $1,000.00 or more but less than $20,000.00. (b) The person violates subsection (3)(a) or (c) and has 1 or more prior convictions for committing or attempting to commit an offense under this section. For purposes of this subdivision, however, a prior conviction does not include a conviction for a violation or attempted violation of subsection (2) or (3)(b). (c) The person violates subsection (3)(a) and the victim is a nonprofit corporation or charitable organization under federal law or the laws of this state. (5) If any of the following apply, the person is guilty of a felony punishable by imprisonment for not more than 10 years or a fine of not more than $15,000.00 or 3 times the value of the money or other property embezzled, whichever is greater, or both imprisonment and a fine: (a) The money or other personal property embezzled has a value of $20,000.00 or more but less than $50,000.00. (b) The person violates subsection (4)(a) or (c) and has 2 or more prior convictions for committing or attempting to commit an offense under this section. For purposes of this subdivision, however, a prior conviction does not include a conviction for a violation or attempted violation of subsection (2) or (3)(b). (c) The person violates subsection (4)(a) and the victim is a nonprofit corporation or charitable organization under federal law or the laws of this state. (6) If the money or other personal property embezzled has a value of $50,000.00 or more but less than $100,000.00, the person is guilty of a felony punishable by imprisonment for not more than 15 years or a fine of not more than $25,000.00 or 3 times the value of the money or property embezzled, whichever is greater, or both imprisonment and a fine. (7) If the money or other personal property embezzled has a value of $100,000.00 or more, the person is guilty of a felony punishable by imprisonment for not more than 20 years or a fine of not more than $50,000.00 or 3 times the value of the money or property embezzled, whichever is greater, or both imprisonment and a fine. (8) Except as otherwise provided in this subsection, the values of money or other personal property embezzled in separate incidents pursuant to a scheme or course of conduct within any 12-month period may be aggregated to determine the total value of money or personal property embezzled. If the scheme or course of conduct is directed against only 1 person, governmental entity within this state, or other legal entity, no time limit applies to aggregation under this subsection. (9) If the prosecuting attorney intends to seek an enhanced sentence based upon the defendant having 1 or more prior convictions, the prosecuting attorney shall include on the complaint and information a statement listing the prior conviction or convictions. The existence of the defendant's prior conviction or convictions must be determined by the court, without a jury, at sentencing or at a separate hearing for that purpose before sentencing. The existence of a prior conviction may be established by any evidence relevant for that purpose, including, but not limited to, 1 or more of the following: (a) A copy of the judgment of conviction. (b) A transcript of a prior trial, plea-taking, or sentencing. (c) Information contained in a presentence report. (d) The defendant's statement. (10) In a prosecution under this section, the failure, neglect, or refusal of the agent, servant, employee, trustee, bailee, or custodian to pay, deliver, or refund to his or her principal the money or property entrusted to his or her care upon demand is prima facie proof of intent to embezzle. (11) If the sentence for a conviction under this section is enhanced by 1 or more prior convictions, those prior convictions must not be used to further enhance the sentence for the conviction under section 10, 11, or 12 of chapter IX of the code of criminal procedure, 1927 PA 175, MCL 769.10, 769.11, and 769.12. (12) The court may order a term of imprisonment imposed for a felony violation of this section to be served consecutively to any term of imprisonment imposed for any other criminal offense if the victim of the violation of this section was any of the following: (a) A nonprofit corporation or charitable organization under federal law or the laws of this state. (b) A person 60 years of age or older. (c) A vulnerable adult as defined in section 174a. (13) As used in this section: (a) "Cryptocurrency" means digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, and that operates independently of a central bank. (b) "Money or other personal property" includes cryptocurrency.

History: 1931, Act 328, Eff. Sept. 18, 1931 ;-- CL 1948, 750.174 ;-- Am. 1957, Act 69, Eff. Sept. 27, 1957 ;-- Am. 1998, Act 312, Eff. Jan. 1, 1999 ;-- Am. 2006, Act 573, Eff. Mar. 30, 2007 ;-- Am. 2019, Act 173, Eff. Mar. 19, 2020 Former Law: See sections 1 and 2 of Act 48 of 1927, being CL 1929, §§ 16980 and 16981.

Simplified Explanation of Michigan Penal Code Section 750.174

This section of the Michigan Penal Code deals with embezzlement by individuals who are in a position of trust such as an agent, servant, employee, trustee, bailee, or custodian. It explains how the crime is defined, the circumstances under which it can be committed, and the punishments based on the value of the property embezzled.

1. Embezzlement Defined: An individual is guilty of embezzlement if they fraudulently take, use, or dispose of property or money entrusted to them due to their position, without the consent of their principal (the person who owns the property or money), intending to use it for their own benefit.

2. Penalties Based on Value: The penalties for embezzlement are based on the value of the money or property taken:

   • Less than $200: If the property value is less than $200, the person can be convicted of a misdemeanor, which could lead to a jail term of up to 93 days, a fine of $500 or 3 times the value of the property (whichever is more), or both.
   • $200 to $1,000: If the property value is between $200 and $1,000 or if a person violates the above rule and has one or more prior convictions or if the victim is a nonprofit corporation, the person can be convicted of a misdemeanor, leading to a jail term of up to 1 year, a fine of $2,000 or 3 times the property value (whichever is more), or both.
   • $1,000 to $20,000: If the property value is between $1,000 and $20,000 or if a person violates the above rule and has one or more prior convictions, the person can be convicted of a felony, leading to a jail term of up to 5 years, a fine of $10,000 or 3 times the property value (whichever is more), or both.
   • $20,000 to $50,000: If the property value is between $20,000 and $50,000 or if a person violates the above rule and has two or more prior convictions, the person can be convicted of a felony, leading to a jail term of up to 10 years, a fine of $15,000 or 3 times the property value (whichever is more), or both.
   • $50,000 to $100,000: If the property value is between $50,000 and $100,000, the person can be convicted of a felony, leading to a jail term of up to 15 years, a fine of $25,000 or 3 times the property value (whichever is more), or both.
   • $100,000 or more: If the property value is $100,000 or more, the person can be convicted of a felony, leading to a jail term of up to 20 years, a fine of $50,000 or 3 times the property value (whichever is more), or both.

3. Aggregation: The values of money or property embezzled in separate incidents can be added together if they are part of a scheme within any 12-month period to determine the total value of embezzled property.

4. Consecutive Sentence: The court can order a consecutive sentence if the victim of embezzlement was a non-profit corporation, a charitable organization, a person 60 years or older, or a vulnerable adult.

5. Intent to Embezzle: The intent to embezzle can be proven by the failure, neglect, or refusal of the entrusted individual to pay, deliver, or refund the money or property to their principal upon demand.

6. Cryptocurrency Included: In this section, "money or other personal property" includes cryptocurrency, which is a type of digital currency that uses encryption techniques and operates independently of a central bank.

Remember, this is a simplified interpretation of the law and should not be used as legal advice. Always consult with a legal professional for matters related to law.