Is it considered fraud to misappropriate a customer's payment?

According to relevant regulations, misappropriation of contract funds meets the constituent elements of the crime of misappropriation of funds, and is therefore likely to be considered a crime of misappropriation of funds; and if it is used to sign a contract with others and illegally appropriate the finances for one's own , it may constitute the crime of contract fraud.

1. If the amount of defrauding public or private property reaches the amount standard stipulated in Article 1 of this Interpretation, and any of the following circumstances occurs, he may be severely punished as appropriate:

1. By sending text messages, calling Publish false information over the phone or by using the Internet, radio and television, newspapers and magazines, etc., to defraud an unspecified majority of people;

2. Fraud for disaster relief, emergency rescue, flood prevention, special care, poverty alleviation, immigration, relief, and medical expenses

3. Committing fraud in the name of raising funds for disaster relief;

4. Fraudulently defrauding the disabled, elderly or people who have lost the ability to work;

5. Causing suicide, mental disorder or other serious consequences to the victim.

2. Although the defrauding of public and private property has reached the "large amount" standard, if one of the following circumstances occurs and the perpetrator pleads guilty and repentes, he will not be prosecuted or will be exempted from criminal punishment:

1. Those who have statutory lenient punishment circumstances;

2. All the stolen goods and compensation were returned before the judgment of the first instance was pronounced;

3. They did not participate in the division of the stolen goods or received less stolen goods and Not the principal offender;

4. The victim understands;

5. Other circumstances are minor and the harm is not great.

3. Any of the following circumstances shall be deemed as "other serious circumstances" stipulated in Article 266 of the Criminal Law and shall be convicted and punished as fraud (attempted):

1. Sending more than 5,000 fraudulent messages;

2. Making more than 500 fraudulent calls;

3. Using vicious fraud methods and causing serious harm.

Legal basis:

"Criminal Law of the People's Republic of China"

Article 272 Staff of companies, enterprises or other units , taking advantage of the position to misappropriate the unit's funds for personal use or lending to others, and the amount is relatively large and has not been repaid for more than three months; or although it has not been more than three months, the amount is relatively large and for profit-making activities, or Anyone who engages in illegal activities shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention; whoever embezzles a huge amount of the unit's funds shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years; if the amount is particularly huge, he shall be sentenced to fixed-term imprisonment of not less than seven years. If a person engaged in official duties in a state-owned company, enterprise or other state-owned unit and a person assigned by a state-owned company, enterprise or other state-owned unit to a non-state-owned company, enterprise or other unit to engage in official duties commit any act in the preceding paragraph, he or she shall be punished in accordance with Article 380 of this Law. Article 4 provides for conviction and punishment. If there is an act in Paragraph 1 and the misappropriated funds are returned before filing a public prosecution, the punishment may be lighter or reduced. Among them, if the crime is relatively minor, the punishment may be reduced or exempted.