DEFALCATE

embezzle, defalcate, peculate, misappropriate, malversate

(verb) appropriate (as property entrusted to one’s care) fraudulently to one’s own use; “The accountant embezzled thousands of dollars while working for the wealthy family”

Source: WordNet® 3.1

Etymology

Verb

defalcate (third-person singular simple present defalcates, present participle defalcating, simple past and past participle defalcated)

(transitive) To misappropriate funds; to embezzle.

(transitive) To cut off; to take away or deduct a part of (money, rents, income, etc.).

Source: Wiktionary

De*fal"cate, v. t. [imp. & p. p. Defalcated; p. pr. & vb. n. Defalcating.] Etym: [LL. defalcatus, p. p. of defalcare to deduct, orig., to cut off with a sickle; L. de- + falx, a sickle. See Falchion.]

Definition: To cut off; to take away or deduct a part of; -- used chiefly of money, accounts, rents, income, etc. To show what may be practicably and safely defalcated from the [the estimates]. Burke.

De*fal"cate, v. i.

Definition: To commit defalcation; to embezzle money held in trust. "Some partner defalcating, or the like." Carlyle.

Source: Webster’s Unabridged Dictionary 1913 Edition