Legal provisions on the crime of abuse of trust to appropriate property

The crime of abuse of trust to appropriate property has become increasingly common in practice. Offenders use every possible scheme to seize the property of others illegally. Such acts seriously disrupt social order and are considered serious criminal offenses under the Penal Code. So, what...

The crime of abuse of trust to appropriate property has become increasingly common in practice. Offenders use every possible scheme to seize the property of others illegally. Such acts seriously disrupt social order and are considered serious criminal offenses under the Penal Code.

So, what exactly is such a crime? How is it handled under the law? In this article, NPLaw explains the main points you need to know.

I. What is the crime of abuse of trust to appropriate property?

Under Article 175 of the Penal Code 2015 (amended in 2017), abuse of trust to appropriate property occurs when a person borrows, rents, or otherwise receives property from another through a contractual agreement but later obtains an intent to appropriate it.

Common behaviors include:

Using fraudulent tactics to turn the property into their own,
Evading or deliberately refusing to return the property despite having the ability to do so, or
Using the property for illegal purposes, leading to an inability to return it.

II. Legal regulations on the crime of abuse of trust to appropriate property

1. Elements constituting the crime

To constitute the crime of abuse of trust to appropriate property, it must meet the elements in Clause 1, Article 175:

Subject (offender): Must have criminal liability capacity as defined by the provisions of Clause 1, Article 12 of the 2015 Penal Code. Accordingly, an offender must be 16 years of age or older.
Object: Such crime infringes upon property ownership rights, unlike other crimes such as robbery or kidnapping, which may also harm life or health.
Subjective element: The offender acts with direct intent, specifically the purpose is to illegally appropriate the property of others.
Objective element (acts and consequences):
+ Acts: The offender initially holds the property legally (through borrowing, renting, or contracting) but later forms the intent to appropriate it, such as by using fraud, evading the lender, or failing to return the property, or using the property unlawfully causing inability repayment.
+ Consequences: The property is actually appropriated, or the offender absconds, or loses the ability to repay.

Requirements for the property’s value:

The property involved must be worth 4,000,000 VND or more; or
For property under 4,000,000 VND, one of the following conditions must apply:
+ The offender has previously been administratively sanctioned for similar acts;
+ The offender has been convicted of similar property crimes and has not yet had the conviction abolished;
+ The property is the victim’s main means of life.

2. Fines for abuse of trust to appropriate property

Under Article 175 of the Penal Code, fines are divided into several levels based on the seriousness of the offense:

- Level 1:

The appropriated property is worth 4,000,000 VND to under 50,000,000 VND, or worth under 4,000,000 VND attached with one of the above special conditions.

Non-custodial reform (probation) for up to 3 years, or
Imprisonment from 6 months to 3 years.

- Level 2:

The following cases will be legal basis to be imprisoned from 02 years to 07 years:

Organized crime,
Professional crime,
Appropriation of property worth from 50,000,000 VND to under 200,000,000 VND,
Abusing position, authority, and reputation of an agency or organization
Using sophisticated tactics
Adversely affecting social order and security
Dangerous recidivism

- Level 3:

The property appropriated is 200,000,000 VND to under 500,000,000VND.

Imprisonment from 5 years to 12 years.

- Level 4:

The property appropriated is 500,000,000 VND or more.

Imprisonment from 12 years to 20 years.
Additional fines (Clause 5):
+ A fine of 10,000,000 to VND to 100,000,000 VND,
+ Possible prohibition from holding certain positions or practicing certain professions for years 1 to 5 years,
+ Partial or full confiscation of assets.

Thus, the maximum fine can be up to 20 years in prison.

3. Is it a crime if misusing borrowed money?

Simply using borrowed property for a purpose other than what was agreed upon does not automatically constitute the crime.\

To be considered criminal abuse of trust, the act must meet the main elements of intent to appropriate the property. For example:

If someone borrows money for business but uses it to build a house, this is not automatically illegal unless it leads to default with the intent to cheat the lender.
If the borrower has no intent to misappropriate and merely cannot repay due to genuine financial hardship, this does not constitute a crime.

Therefore, misuse only is not enough to repay the principal; it isn’t the borrower’s intent to appropriate the property for the lender.