Unauthorized use of money — commonly understood as misappropriation, conversion, embezzlement, or the personal use of funds entrusted to or under the control of a person without authority — is a serious criminal offense in the Philippines. The specific charge that can be filed depends primarily on three factors:

The nature of possession (material vs. juridical)
The relationship between the offender and the owner of the money (private individual, employee, corporate officer, public officer)
Whether deceit, abuse of confidence, or negligence is present

The main criminal charges that prosecutors file in these cases are:

Estafa through misappropriation or conversion (Art. 315, par. 1(b), Revised Penal Code)
Qualified Theft (Arts. 308, 309, 310, RPC, as amended by RA 10951)
Malversation of public funds or property (Art. 217, RPC)
Syndicated Estafa (Presidential Decree No. 1689)
Plunder (RA 7080, as amended) – when committed by public officers and the amount is at least ₱50,000,000
Violation of RA 8484 (Access Devices Regulation Act of 1998) – for unauthorized use of credit/debit cards or bank accounts via access devices
Cybercrime offenses under RA 10175 as amended by RA 12010 – when committed through electronic means
Violation of Section 3(e) of RA 3019 (Anti-Graft and Corrupt Practices Act) – when committed by public officers with evident bad faith or gross inexcusable negligence

Below is a complete discussion of each charge, their elements, penalties (updated as of 2025), key distinctions, and landmark Supreme Court rulings.

1. Estafa Through Misappropriation or Conversion

(Article 315, paragraph 1(b), Revised Penal Code)

This is the most commonly filed charge when money is received with an obligation to return or apply it to a specific purpose, and the recipient instead uses it for himself.

Elements (consistently required by the Supreme Court):

The offender received money, goods, or other personal property;
He received it in trust, on commission, for administration, or under any obligation involving the duty to deliver or return the same;
There was misappropriation or conversion (or denial of receipt);
The act caused prejudice to another; demand is not always required if conversion is clearly proven.

Key Principle on Possession: The offender must have juridical possession (not mere material or physical possession). The owner voluntarily parted with the money but retained juridical ownership because of the obligation to return or apply it properly.

Examples where estafa is proper:

Agent or collector given money to remit to principal but pockets it
Borrower who obtains a loan by pretending it is for business but uses it for personal gambling
Corporate treasurer given funds for a specific corporate purpose but diverts it to personal account
Person entrusted with collections for a charity or investment scheme

Penalties (still using the 1930 amounts because RA 10951 did not amend Art. 315):

Amount ≤ ₱22,000: Prisión correccional maximum to prisión mayor minimum (4 years, 2 months, 1 day to 8 years)
Amount > ₱22,000: The above penalty imposed in its maximum period (up to 8 years) + 1 year for every additional ₱10,000, but total penalty shall not exceed 20 years. When the additional years push the penalty beyond prisión mayor, it is reclassified as reclusion temporal.

Maximum possible penalty: 20 years reclusion temporal (effectively the cap even if the mathematical computation exceeds it).

Prescription: 15 years if the imposable penalty is > 10 years; otherwise 10 years.

2. Qualified Theft

(Articles 308, 309, 310 RPC, as amended by RA 10951)

Filed when the offender had only material possession (physical custody) but the owner did not part with juridical possession.

Classic examples:

Cashier who steals from the cash register
Bank teller who pockets deposits
Driver or messenger who runs away with the collection
Employee who has access to the company vault and takes cash

Qualifying circumstance most often used: Abuse of confidence (Art. 310)

Penalties after RA 10951 (2017) – dramatically increased:

Value of Money Stolen	Penalty for Simple Theft	Penalty for Qualified Theft (two degrees higher)
≤ ₱5,000	Arresto menor or fine ≤ ₱50,000	Prisión correccional minimum to medium (6 mos–4 yrs, 2 mos)
> ₱5,000 – ₱500,000	Prisión correccional min to med	Prisión mayor min to reclusion temporal min
> ₱500,000 – ₱1,500,000	Prisión correccional max to prisión mayor min	Reclusion temporal medium to maximum
> ₱1,500,000 – ₱3,000,000	Prisión mayor max to reclusion temporal min	Reclusion perpetua
> ₱3,000,000 – ₱9,000,000	Reclusion temporal medium to maximum	Reclusion perpetua
> ₱9,000,000	Reclusion perpetua	Reclusion perpetua

Qualified theft now carries extremely heavy penalties — reclusion perpetua is common when the amount is in the millions.

Prescription: 20 years when the penalty is reclusion perpetua.

3. Malversation of Public Funds or Property

(Article 217, Revised Penal Code)

The public-sector counterpart of estafa through misappropriation.

Elements:

Offender is a public officer;
He has custody or control of public funds/property by reason of his office;
He appropriates, misapplies, or takes the funds, or through negligence allows another to take them;
Damage to the government is not required if the act is intentional.

Private individuals who conspire with the public officer are also liable as principals.

Penalties: Identical to those of estafa under Art. 315 + perpetual special disqualification from public office. If the amount is small and there is no damage, the penalty can be lowered.

Common cases: Disbursing officers who divert payroll funds, mayors who use IRA shares for personal expenses, treasurers who cannot account for cash advances.

4. Syndicated Estafa

(Presidential Decree No. 1689)

When estafa is committed by a syndicate (five or more persons).

Penalty: Life imprisonment to death (still enforceable because the death penalty was repealed only for RPC crimes; PD 1689 penalties remain).

Often used in large-scale investment scams, Ponzi schemes, or corporate embezzlement by boards of directors acting together.

5. Plunder

(RA 7080, as amended by RA 7659 and RA 10951)

For public officers who amass ill-gotten wealth of at least ₱50,000,000 through a combination or series of overt criminal acts (including misappropriation of public funds).

Penalty: Reclusion perpetua to death (currently reclusion perpetua).

Famous cases: Estrada, Revilla, Enrile, Napoles.

6. Unauthorized Use of Access Devices

(RA 8484)

Covers unauthorized use of credit cards, debit cards, ATM cards, or any access device to obtain money.

Penalty: Prisión mayor (6 years and 1 day to 12 years) + fine of ₱10,000 or twice the value obtained, whichever is higher.

If committed with another crime (e.g., estafa), both are charged complexly or separately.

7. Cybercrime Offenses

(RA 10175 as amended)

When the unauthorized use is done through computer systems (e.g., hacking a bank account, unauthorized fund transfer via online banking, phishing to obtain OTPs).

The basic offense (illegal access, data interference, computer-related fraud) carries a penalty one degree higher than the underlying crime (e.g., computer-related estafa or theft).

Critical Distinctions Established by the Supreme Court

Scenario	Proper Charge	Leading Case / Reason
Money entrusted with obligation to return/deliver	Estafa	Gamboa v. CA (2007), Chua-Burce v. CA (2000) – juridical possession transferred
Employee has mere physical custody (cashier, teller)	Qualified Theft	People v. Locson (1937), Roque v. People (2010) – owner did not part with juridical possession
Corporate officer diverts corporate funds to personal use	Usually Estafa	Afdal v. People (2018) – officer received funds under obligation to apply to corporate purpose
Public officer diverts public money	Malversation	Art. 217 expressly applies even without deceit

Civil Liability

In all the above crimes, the offender is civilly liable ex delicto for:

Return of the money or its value
Legal interest from the time of misappropriation (6% per annum, now 6% from judicial demand)
Moral and exemplary damages if warranted

The civil action is deemed instituted with the criminal action unless expressly waived or reserved.

Practical Notes for Victims

File the complaint immediately — delays weaken evidence of demand and prejudice.
Gather documentary evidence: acknowledgment receipts, trust agreements, board resolutions, disbursement vouchers, bank records.
For large corporate embezzlement, consider asking the prosecutor to charge syndicated estafa to increase the penalty.
If the offender is a public officer, file also with the Office of the Ombudsman.

Unauthorized use of money, regardless of the legal label, is treated with utmost severity by Philippine courts, especially when large amounts or abuse of trust is involved. Penalties have become significantly heavier since RA 10951, and reclusion perpetua is now routinely imposed in qualified theft or malversation cases involving millions of pesos.