[Direct answer]In the Beijing area, if a company discovers that an employee has embezzled company assets, it can report the case to the public security organ at the location of the crime or the residence of the suspect for prosecution. According to Article 271 of the Criminal Law of the People's Republic of China (amended on December 26, 2020 and implemented on March 1, 2021) and the provisions on jurisdiction and case filing in the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018), embezzlement of a large amount of assets constitutes a crime. The company should organize documentary evidence, electronic data, and evidence of losses, prepare a report for the case, and submit it to the public security organ for review and filing. The key to successful prosecution lies in whether the evidence is sufficient to prove that the employee used his position to illegally appropriate the company's assets. It is recommended to fix the evidence as soon as possible and consult a professional lawyer. For more details, please refer to the following link:Criminal defense and criminal case filing services.

I. Problem background and typical scenarios

When companies discover that employees have embezzled funds, falsified expenses, or transferred customer funds, they often don't know how to initiate criminal proceedings. Typical scenarios include: financial staff withholding revenue for a long time, sales staff misappropriating collected funds, executives fabricating transactions to embezzle company assets; and companies having clues but scattered evidence, fearing that the reports will not be accepted. Unlike civil disputes, embezzlement is a public prosecution case, which requires the public security organ to initiate an investigation. At this time, clarifying the boundaries between criminal and civil cases and the reporting path is more important than confronting the suspect directly. For cases involving fund recovery, it can be combined with other legal procedures.Creditor-debtor relations and enforcement case servicesCoordinate and plan things in a comprehensive and organized manner, ensuring that all aspects are considered and resources are used efficiently.

II. Key points of contention

The focus of the controversy lies in three aspects. Firstly, guilt and innocence: whether the case meets the standard for prosecution of large-scale crimes, which is a prerequisite for the public security organ to accept the case. Secondly, taking advantage of one's position: whether the funds are possessed based on one's official authority, distinguishing it from ordinary theft or fraud. Thirdly, the sufficiency of evidence: the company needs to prove the ownership of the property, the act of embezzlement, and the amount of the loss. When handling similar cases in Beijing, the public security organ attaches great importance to the authenticity of documentary evidence, bank transaction records, and audit reports. A complete chain of evidence makes it easier to file a case. For cases involving corporate internal compliance, reference can be made to relevant provisions.Business and contract dispute services for enterprises.

III. Professional analysis by Hengluo Law Firm

Based on practical observations in handling corporate duty crime cases, the most common problem with corporate accusations of embezzlement is the lack of material evidence. According to Article 271 of the Criminal Law, embezzlement requires that the perpetrator uses his position to illegally appropriate the company's assets on a large scale. In practice, some companies only have suspicions but lack systematic evidence, and are required to supplement the evidence after reporting the case; some companies confuse civil misappropriation with criminal embezzlement, leading to a waste of procedural resources. Hengluo Lawyers usually suggest the following steps: first, sort out the employee's authority and the ownership of the embezzled assets; then fix the bank statements, contracts, financial vouchers, and electronic data; if necessary, commission a judicial audit to confirm the amount; finally, form a logically closed reporting material. For cases involving disputes between shareholders and the company, it is recommended to combine the above steps with the relevant legal provisions to ensure the accuracy and completeness of the evidence.Intellectual property protection and corporate legal servicesClarify the relationship between the main parties involved.

IV. Practical suggestions and legal basis

The core basis is Article 271 of the Criminal Law of the People's Republic of China (amended on December 26, 2020 and implemented on March 1, 2021) (Crime of Embezzlement), the provisions on case filing jurisdiction of the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018), and the relevant standards for filing and prosecution of cases. Practical suggestions: Confirm the jurisdiction of the public security organ at the crime scene or the suspect's residence; organize the report, business license, employee labor relations and authority certificates, bank and financial vouchers, and loss audits; fix electronic evidence such as chats and emails; submit the materials and follow up on the case filing review. For cases involving recovery of stolen property and mitigation of losses, it can be combined with other relevant provisions.Special services and other case-related servicesEvaluation.

5. Henglu Law Firm's Advice

The key to prosecuting embezzlement lies in presenting evidence rather than engaging in emotional confrontations. Companies should secure financial and electronic data as soon as possible to prevent key transaction records from being overwritten. The materials submitted to the police must clearly demonstrate the employee's position of trust, the illegal possession of assets, and the amount involved. When necessary, it is advisable to seek assistance from auditors and lawyers to increase the success rate of case filing. At the same time, attention should be paid to the connection between criminal and civil procedures, and civil disputes can be handled through separate litigation. It is necessary to remain vigilant against unrealistic promises of case filing or asset recovery. If professional support is needed, it is advisable to seek assistance from relevant professionals.Criminal defense and criminal case filing servicesMake an appointment for an evaluation.

VI. Frequently Asked Questions

Q1: If the company accuses an employee of embezzlement, will the public security organ initiate a case against them?

Whether a case is filed or not depends on whether the evidence meets the standard for filing a prosecution and whether the facts of the crime are clear. Embezzlement is a public prosecution case. If the public security organ reviews and finds that there are facts of the crime that require criminal responsibility to be investigated, it shall file a case; if the evidence is insufficient or it belongs to a civil dispute, it may not file a case. The more materials submitted by the company can prove that the person used his position for personal gain, illegally appropriated property and the amount involved is large, the higher the possibility of the case being filed. If necessary, the company may apply for administrative review or reconsideration.

Q2: When reporting an allegation of embezzlement to the public security authorities, what evidence do I need to prepare?

The core evidence includes: business licenses and employee labor relations, power of attorney (proving the convenience of the position); bank statements, financial vouchers, contracts, and reconciliation records (proving the ownership of assets and the act of embezzlement); judicial audit reports (confirming the amount of losses); electronic data such as chats and emails (proving subjective illegal possession). The evidence should form a closed loop to avoid having only suspicions without objective materials, otherwise it is easy to be required to make corrections.

Q3: How much does it cost to hire a lawyer to assist with a charge of embezzlement?

The fees charged by lawyers for assisting with complaints are negotiated between the law firm and the client. They are usually charged on a per-stage or per-item basis, with the specific fees subject to the contract of engagement. There is no unified national pricing standard for these fees. Unlike criminal litigation representation, the work of lawyers in the complaint stage mainly involves organizing materials, collecting evidence, and communicating with clients. It is recommended to first understand the fee structure before hiring a lawyer to avoid misunderstandings later on.

Q4: How long does it usually take from reporting a case to filing a case or arresting someone?

After the public security organ accepts the report of a case, there is a corresponding time limit for reviewing whether to file a case. If the materials are complete and the facts are clear, it usually takes less time to decide whether to file a case; if there is a need for further verification, the time limit will be extended accordingly. Whether to take compulsory measures such as detention against the suspect after filing a case depends on the evidence and the risk of escape, and there is no fixed time limit. The overall progress depends on the completeness of the evidence and the case-handling arrangements of the jurisdictional organ.

Q5: If I discover that an employee is embezzling company funds, what should I do first?

It is recommended to proceed in four steps: First, immediately seal the financial books, bank records, and electronic data to prevent evidence from being overwritten or destroyed; Second, sort out the employees' scope of authority and the ownership of the embezzled assets, and preliminarily calculate the amount of losses; Third, if necessary, entrust a judicial audit and organize a report of the case and a list of evidence; Fourth, report the case to the public security organ with jurisdiction, follow up on the case review, apply for a review and reconsideration according to law if the case is not registered, and seek compensation through civil channels as appropriate.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Criminal defense legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.