I don't think this is considered embezzlement. THat money was never entrusted to us, nor did we work for him or with him in any capacity. I think it was simple theft. Money was coming into our personal checking account from a credit card company, that should have been going into someone elses. Instead of calling the new business owner to inform him of the error, we kept quiet and allowed the money to keep coming in. To further complicate things, the checking account in which the improper funds were being deposited, is owned by someone else (my husband's father), my husband was only a signer. Although my Father-In-Law knew nothing of this.