California Embezzlement as an Aggravated Form of Theft
Embezzlement under California law is the "fraudulent appropriation of property by a person to whom it has been entrusted." This used to be considered a distinct crime. But now California law treats embezzlement--and punishes it--merely as a variant of theft.
Embezzling property up to $400 in value gets prosecuted as a petty theft. Embezzling more than $400 worth of property may be punished as a grand theft. The former is a misdemeanor with a maximum sentence of a year county jail. The latter may be charged as a felony and can land someone in California state prison for up to three years.
So if they're charged under the same section, what's ultimately the distinction between embezzlement and standard theft offenses? The answer lies primarily in how the crimes get viewed by prosecutors, judges and juries.
To embezzle is to steal from someone towards whom you occupy a position of trust: such as your employer, your client, or someone for whom you serve as a caregiver. Most people view a theft of this sort as worse in nature than stealing from a stranger. Consequently embezzlement cases tend to get prosecuted harder and punished more harshly.
Nevertheless, embezzlement cases can be difficult for the state to prove...and often times innocent people get wrongly implicated. A person accused of this crime (by his/her employer, for example) should consult an attorney before speaking about the situation to anyone--the police, or the party making the accusation.