defalcation Meaning, Definition & Usage

  1. noun the sum of money that is misappropriated
  2. noun the fraudulent appropriation of funds or property entrusted to your care but actually owned by someone else
    embezzlement; peculation; misappropriation; misapplication.

WordNet

De`fal*ca"tion noun
Etymology
LL. defalcatio: cf. F. défalcation.
Definitions
  1. A lopping off; a diminution; abatement; deficit. Specifically: Reduction of a claim by deducting a counterclaim; set-off. Abbott.
  2. That which is lopped off, diminished, or abated.
  3. An abstraction of money, etc., by an officer or agent having it in trust; an embezzlement.

Webster 1913