Hammond Hardware is a small business that has been serving the local community for over 50 years. The company specializes in home improvement supplies and tools, has 10 employees, and annual revenues of $1 million.

Destiny was a clerk at Hammond Hardware for 1 year. She was well-liked by her colleagues and had received positive performance reviews from her boss. As part of her job responsibilities, Destiny managed purchases for the business and helped reconcile financial statements. Due to her position and tenure, Destiny was one of 3 employees issued a company credit card for business-related purchases.

Over a period of 6 months, from January to June 2024, Destiny used the company credit card to make unauthorized personal purchases totaling $15,000. These purchases included:

• Amazon gift cards valued at $5,000
• Airline tickets for personal travel to Hawaii and Europe, totaling $3,500
• Two high-end personal computers and various electronics, amounting to $6,500

None of these items were for legitimate business purposes. To hide her actions, Destiny manipulated the company's financial records by:

• Coding personal purchases as office supplies or equipment
• Creating fake invoices for non-existent vendors
• Altering credit card statements before submitting them for review

The embezzlement was discovered in July 2024 when her boss reviewed all the financial records after realizing that Destiny did not submit receipts as requested. He noticed discrepancies in the company's financial statements, particularly in the office supplies and equipment categories, which showed unusually high expenses.

Upon further investigation, Hammond Hardware's management found that Destiny had been using the company credit card for personal expenses. They also discovered that she frequently posted on social media about expensive vacations, which seemed suspicious given her salary.

Destiny's boss went to the police who contacted Destiny. When confronted, Destiny initially denied any wrongdoing but later admitted to the unauthorized use of the company credit card when presented with evidence. She claimed she was under financial stress due to medical bills and a recent divorce. She also claimed that she was under mental stress and was treated for depression and anxiety.

The case has now been referred to the district attorney's office for potential criminal charges.

Rule. Explain what the law says. Give references (for example, a statute, case, or page in the textbook.)