Defending Against Allegations of Embezzlement in San Diego, California, Nonprofits

Posted on: June 4th, 2025 by Selena Moore

Defending Against Allegations of Embezzlement in San Diego, California, Nonprofits

Accusations of embezzlement within nonprofit organizations in San Diego carry unique challenges and devastating consequences. When financial irregularities arise in charitable organizations, public scrutiny intensifies, making these cases particularly damaging to one’s professional reputation and personal life—even before any conviction. The stakes are exceptionally high, with potential criminal penalties compounded by career destruction and community ostracism.

At Dod Law, we’ve defended numerous professionals facing embezzlement allegations throughout San Diego. Our experience has shown that these cases require specialized knowledge of both criminal defense and nonprofit financial operations to mount an effective defense strategy.

Understanding Embezzlement Charges in San Diego Nonprofit Context | Embezzlement in San Diego

Embezzlement in California falls under Penal Code 503, defined as the fraudulent appropriation of property by someone to whom it has been entrusted. In nonprofit organizations, embezzlement allegations typically involve:

• Misuse of donated funds for personal expenses
• Unauthorized transfers between accounts
• Creation of fictitious vendors or employees
• Manipulation of financial records to conceal misappropriation
• Inappropriate reimbursements for personal expenses

These charges are particularly complex in nonprofit settings because of the unique financial structures and oversight mechanisms in charitable organizations. The commingling of restricted and unrestricted funds, volunteer-heavy boards with limited financial expertise, and unusual reimbursement practices can sometimes create the appearance of impropriety where none exists.

Immediate Steps When Facing Allegations | Embezzlement in San Diego

If you’re facing embezzlement allegations related to your role in a San Diego nonprofit, taking prompt action is essential:

Secure Legal Representation Before Speaking to Anyone

Before discussing the situation with board members, colleagues, or investigators, consult with an experienced criminal defense attorney. Many professionals damage their cases by attempting to explain financial discrepancies without legal guidance, inadvertently making statements that prosecutors later use against them.

Preserve Financial Documentation

Maintain copies of all relevant financial records, including:

• Email communications about financial decisions
• Board meeting minutes approving expenditures
• Financial policies and procedures documents
• Receipts and documentation for questioned transactions
• Prior audits and financial reviews

This documentation may be critical in demonstrating proper authorization for questioned transactions or identifying alternative explanations for financial discrepancies.

Understand the Investigation Process

Embezzlement investigations in San Diego typically progress through several stages:

• Internal audit or financial review by the nonprofit
• Potential referral to law enforcement
• Police investigation and evidence gathering
• Prosecutor review and charging decision
• Arraignment and court proceedings

Understanding where you are in this process helps determine appropriate defense strategies at each stage.

Common Defense Strategies for Nonprofit Embezzlement Cases

Defending against embezzlement charges requires a tailored approach based on the specific circumstances of your case. Effective defenses often include:

Lack of Fraudulent Intent

One of the most powerful defenses in embezzlement cases is demonstrating absence of criminal intent. Many alleged embezzlement situations actually stem from:

• Misunderstandings about authorized uses of funds
• Confusion regarding reimbursement policies
• Accounting errors or software issues
• Miscommunication between board and staff about financial decisions

If we can show that actions were taken in good faith rather than with intent to defraud, this directly addresses a core element the prosecution must prove.

Authorization Defense

In nonprofit organizations, spending authority is often distributed across multiple stakeholders and documented in various ways. We frequently demonstrate that questioned transactions were actually authorized through:

• Board resolutions or minutes
• Established organizational practices
• Verbal approvals from authorized individuals
• Consistent with past organizational practices

Many cases involve expenditures that were properly authorized but poorly documented—a management problem rather than a criminal act.

Accounting Error or Misunderstanding

Financial discrepancies sometimes result from legitimate accounting errors rather than criminal activity. We work with forensic accountants to identify alternative explanations for financial irregularities, such as:

• Misclassification of expenses
• Timing differences in recognition of revenues and expenses
• Software limitations or errors
• Inconsistent application of accounting principles

These explanations can transform allegations of criminal conduct into demonstrations of administrative shortcomings.

The Importance of Specialized Expert Witnesses

Defending against nonprofit embezzlement charges in San Diego often requires specialized expert testimony. We collaborate with:

Forensic Accountants

These experts can review financial records to identify legitimate explanations for apparent discrepancies and reconstruct transaction histories to demonstrate proper handling of funds.

Nonprofit Management Specialists

These professionals can testify about standard practices in nonprofit financial management, helping contextualize actions that might seem unusual to those unfamiliar with nonprofit operations.

Character Witnesses

Particularly in nonprofit cases where the defendant often has a history of community service, character witnesses can help establish a pattern of ethical behavior inconsistent with allegations of theft.

Navigating Professional Consequences

Beyond criminal penalties, embezzlement allegations in nonprofit settings typically trigger professional repercussions. We help clients manage:

• Administrative leave decisions
• Communications with professional licensing boards
• Interactions with current or prospective employers
• Professional reputation management

Taking a proactive approach to these issues can help minimize collateral damage while the criminal case proceeds.

Understanding San Diego Prosecutors’ Approach | Embezzlement in San Diego

San Diego prosecutors take a particularly aggressive stance toward embezzlement cases involving charitable organizations. They often seek to make examples of these cases due to:

• Public trust concerns when donated funds are involved
• Media interest in nonprofit scandals
• Political pressure to address white-collar crime

Understanding this prosecutorial mindset allows us to develop more effective negotiation strategies and anticipate potential challenges in your case.

Contact an Experienced San Diego Criminal Defense Attorney 

If you’re facing embezzlement allegations related to a nonprofit organization in San Diego, securing skilled legal representation should be your top priority. At Dod Law, our defense team brings nearly two decades of experience in complex financial crime defense throughout Southern California.

Our founding attorney, Dod Ghassemkhani, was named San Diego County’s 2023 Trial Lawyer Of The Year by the San Diego Criminal Defense Bar Association. With experience handling over 6,500 criminal cases, including complex white-collar matters, our team offers the strategic defense needed to protect your rights, reputation, and future. 

If You Are Charged with Embezzlement in San Diego Call Dod Law

To schedule a free consultation with a member of our first-class legal team, call us today at our San Diego office (619) 814-5110 | Orange County office 949-681-7020  | Vista office 760-814-6025 | or schedule an appointment by filling out our online contact form