OK - I get what you are saying. But my argument is that if the funds are used for the business and not his personal use, it is difficult to claim it is "theft" or criminal. I would be willing to bet that most businesses charge fees for different things and the money all goes into one general fund. For example, say you hire a contractor to build you a patio. He gives you a list of items that you are expected to pay for, including materials, labor, and let's just say, a built in grill for an additional $200. Now, the contractor takes your check and deposits it into his bank account. Do you expect that he takes those very dollars and goes straight to the store to buy the materials? No. He puts it in his bank account with the rest of his money. Your job is scheduled for June, but by April, he is having financial difficulties. Turns out that several deals fell through, people's checks bounced, whatever, and he ends up without enough cash to purchase your grill, which you've already paid for. Patio is complete, but no grill. He goes out of business. You would be mad, of course, and you would expect him to pay you the difference for the money you paid for the grill. Now, the question is did he "steal" your money? It's a fine line. He didn't intend to rip you off. So what do you do? Call the cops? Or call your lawyer? Should the contractor be arrested and thrown in jail? Or should he be sued in a civil court? You may feel both, and perhaps you're right. But in my eyes, it is a civil matter.
Now...if the contractor was a gypsy who showed up at your house, you paid him $500 to sealcoat your driveway and never did the job and then skipped town, I'd say that is theft. No intention of providing you a service or product, just an intent to take your money and scram. I'd say arrest them and charge them with theft.