Embezzlement of a Bankruptcy Estate is the illegal use of a bankruptcy estate’s assets by an individual or entity entrusted with managing the estate. It involves the misappropriation of funds or other property for personal gain, without proper authorization, and is considered a form of fraud. Common types of embezzlement of a bankruptcy estate include misappropriation of funds, misappropriation of assets, and conflicts of interest. The misappropriation of funds occurs when a fiduciary or other person with control over the bankruptcy estate’s assets misuses them for their own benefit. This includes diverting funds, using funds for unauthorized expenses, or failing to properly account for the use of funds. Misappropriation of assets occurs when a fiduciary or other person with control over the bankruptcy estate’s assets uses them for their own benefit or to benefit someone else, without proper authorization. A conflict of interest arises when an individual or entity with control over the bankruptcy estate’s assets uses them for their own benefit or for the benefit of someone else, rather than for the benefit of the estate. Embezzlement of a bankruptcy estate is a serious offense, and can result in criminal penalties.