verb (used with object), misappropriated, misappropriating.
to put to a wrong use.
to apply wrongfully or dishonestly, as funds entrusted to one's care.

1855–60; mis-1 + appropriate

misappropriation, noun
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Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
misappropriate (ˌmɪsəˈprəʊprɪˌeɪt)
(tr) to appropriate for a wrong or dishonest use; embezzle or steal

Collins English Dictionary - Complete & Unabridged 10th Edition
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Example sentences
Breaking news goes from being unknown to widely known so quickly that there is
  no longer any chance to misappropriate its value.
Favorable slight of hands are quite useful to misappropriate from the unwilling
  and willing alike.
They either misappropriate money themselves or receive pay-offs by powerful
  interests to ignore or distort the law.
Moreover, government officials may take bribes and kickbacks or even
  misappropriate funds to their own accounts.
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