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