Who investigates public money
Embezzlement of public funds can draw several offices at once. In New York, the State Comptroller audits state agencies and local governments, New York City's Department of Investigation examines city agencies and contractors, inspectors general oversee state and federal programs, and district attorneys or the state Attorney General prosecute the crimes. When an organization receives substantial federal funding, federal prosecutors may bring charges for theft from a federally funded program. New York does not have a separate crime called embezzlement; these cases are usually charged as larceny, often alongside charges such as official misconduct or falsifying business records.
What is at stake beyond the charge
For public employees, the consequences can extend past any criminal case to loss of employment, disciplinary proceedings, and in some situations effects on public pension rights. Contractors and nonprofits may face debarment, grant clawbacks, and civil claims for repayment. Restitution is common, and an offer to repay is sometimes appropriate, but how and when it happens matters, and repayment does not automatically end a prosecution. Many cases involve gray areas such as unclear reimbursement policies, informal approvals from supervisors, or money moved between accounts for legitimate operational reasons. Those facts are often where the defense starts.
Responding to auditors and investigators
Questions from auditors can feel routine, but answers given in an audit can be passed to investigators, so it is reasonable to get advice before a formal interview. Public employees are sometimes compelled to answer questions under threat of discipline, which raises distinct constitutional issues worth understanding beforehand. Keep copies of policies, approvals, and emails you lawfully have, and do not access agency systems or records after being placed on leave. Accounts from coworkers who were interviewed may differ from yours, so the documentary record often carries more weight than any single recollection. We begin by identifying which offices are involved, what period and transactions are under review, and whether any statements have already been given.
