Breach of Trust
Also known as: Criminal Breach of Trust, Embezzlement by Employees, Aggravated Breach of Trust, Güveni Kötüye Kullanma
Author Ali Gül
In short
A person disposing of property entrusted to them, for their own or another's benefit and contrary to the purpose of the entrustment, or denying the entrustment; the aggravated form arises for property entrusted due to a professional, commercial or service relationship.
Breach of trust is a person disposing of property entrusted to them for a specific purpose, for their own or another’s benefit and contrary to that purpose, or denying the entrustment (Turkish Criminal Code Art. 155). It is one of the most common offences in in-house misconduct.
Basic and Aggravated Forms
- Basic form: Six months to two years’ imprisonment and a criminal fine. Investigation and prosecution require a complaint.
- Aggravated form: If committed in respect of property entrusted due to a professional, artistic, commercial or service relationship, or under a power to manage another’s property for whatever reason, one to seven years’ imprisonment and a criminal fine. The aggravated form does not require a complaint.
Typical Examples in Companies
- An employee collecting payments and not transferring them to the company,
- Using a company card or advance for personal expenses,
- Selling company stock or equipment without authorisation,
- A manager transferring company assets to their own company.
Effective Repentance and Mediation
If the offender fully compensates the victim’s loss by returning the property or paying compensation before prosecution begins, the penalty is reduced by up to two thirds; if after prosecution begins but before judgment, by up to half; see Effective Repentance. The basic form is subject to criminal mediation.
What Should the Company Do?
- Start an internal investigation without delay to preserve evidence and document the incident,
- In the basic form, not miss the complaint deadline,
- Join the criminal case as an intervening party and claim compensation,
- Observe employment law deadlines for terminating the employment contract.
Obtaining property by deceiving the other party through fraudulent conduct may constitute aggravated fraud.
Frequently Asked Questions
Which offence is committed when an employee transfers company money to their own account?
If the money was entrusted to the employee or left at their disposal because of their role, the act usually constitutes aggravated breach of trust arising from a service relationship. The aggravated form does not require a complaint and carries one to seven years' imprisonment.
What is the difference between breach of trust and fraud?
In breach of trust, the property has already been lawfully handed over to the offender, who uses it contrary to its purpose. In fraud, the offender deceives the other party through fraudulent conduct to obtain the property in the first place.
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