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• n  the sum of money that is misappropriated
• n  the fraudulent appropriation of funds or property entrusted to your care but actually owned by someone else

• Last month a jury pronounced Treasurer Baldwin guilty of perjury by falsifying bank statements to cover up the defalcation.
• They decided that they had to share a collective responsibility for not having discovered the defalcation earlier.
• No danger was there of defalcation, however.

• embezzlement
• peculation
• misapplication
• misappropriation