Page "Embezzlement" Paragraph 8

* Lawful possession: The critical element is that the defendant must have been in lawful possession of the property at the time of the fraudulent conversion and not have mere custody of the property.

If the defendant had lawful possession the crime is embezzlement.

If the defendant merely had custody, the crime is larceny.

Determining whether a particular person had lawful possession or mere custody is sometimes extremely difficult.