What characterizes embezzlement in criminal law?

Embezzlement is specifically characterized by the conversion of property that a person already lawfully possesses, coupled with an intent to defraud the owner of that property. This distinguishes embezzlement from simple theft, where the perpetrator does not have lawful possession of the property at any time. The key element here is the lawful possession; the individual in an embezzlement case often has the right to possess the property but misappropriates it with dishonest intentions, which indicates a clear intention to defraud the rightful owner.

This nuanced understanding of how embezzlement operates highlights the importance of the intent to defraud during the act of conversion, setting it apart from mere possession or temporary control of property without that fraudulent intent. Other options describe behaviors that do not necessarily embody the core elements of embezzlement, such as lacking lawful possession or the intent to defraud.