defalcation

de·fal·cate   (dĭ-fāl'kāt', -fôl'-, děf'əl-)    intr.v.   de·fal·cat·ed, de·fal·cat·ing, de·fal·cates To misuse funds; embezzle. [Medieval Latin dēfalcāre, dēfalcāt-, to mow, deduct : Latin dē-, de- + Latin falx, falc-, sickle.] de'fal·ca'tion (dē'fāl-kā'shən, -fôl-, děf'əl-) n., de·fal'ca'tor n.

defalcation 

Main Entry: de·fal·ca·tion
Pronunciation: "dE-"fal-'kA-sh&n, -"fol-, di-; "de-f&l-'kA-sh&n
Function: noun
Etymology: earlier, deduction, lessening, shortcoming, from Medieval Latin defalcatio discounting of debt, from defalcare to cut down, deduct, from Latin de- away from + falc-, falx sickle
1 : failure to account for or pay over money that has been entrusted to one's care; also : an instance of such failure —compare EMBEZZLE, MISAPPROPRIATE
NOTE: Defalcation does not necessarily involve culpability or misconduct.
2 : a failure to meet a promise or expectation defalcations did not end with its refusal to submit a desegregation plan —S. L. Lynch>