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What is Breach of Trust?

What is Breach of Trust?

Breach means to break, and a breach of trust is basically a broken trust, a way in which someone fails to carry out promises connected to something or someone entrusted to them.

In the business sense you’ll see the term breach of trust sometimes related particularly to the administration of trusts.  Breach of trust may be used to show how a person purposely or through neglect failed to act in the terms specified in agreements; an accountant who embezzles funds breaks trust with his clients.

Under The South Carolina Code of Laws:

Embezzlement of public funds:

(A) It is unlawful for an officer or other person charged with the safekeeping, transfer, and disbursement of public funds to embezzle these funds.

A person who violates the provisions of this section is guilty of a:

(1) felony and, upon conviction, must be fined in the discretion of the court to be proportioned to the amount of the embezzlement and imprisoned not more than ten years if the amount of the embezzled funds is ten thousand dollars or more;

(2) felony and, upon conviction, must be fined in the discretion of the court to be proportioned to the amount of embezzlement and imprisoned not more than five years if the amount of the embezzled funds is less than ten thousand dollars.

(C) The person convicted of a felony is disqualified from holding any office of honor or emolument in this State; but the General Assembly, by a two-thirds vote, may remove this disability upon payment in full of the principal and interest of the sum embezzled.

Breach of trust with fraudulent intent:

(A) A person committing a breach of trust with a fraudulent intention or a person who hires or counsels another person to commit a breach of trust with a fraudulent intention is guilty of larceny.

A person who violates the provisions of this section is guilty of a:

(1) misdemeanor triable in magistrates court or municipal court if the amount is two thousand dollars or less. Upon conviction, the person must be fined not more than one thousand dollars, or imprisoned not more than thirty days;

(2) felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years if the amount is more than two thousand dollars but less than ten thousand dollars;

(3) felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than ten years if the amount is ten thousand dollars or more.