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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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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Word Origin & History

1794; from mis- (1) + appropriation. Related: Misappropriate (v.).
Online Etymology Dictionary, © 2010 Douglas Harper
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Example sentences
Echoing a theme of beneficiaries, the misappropriation and theft of food has
  resulted in a loss of food relief.
They soon determined there was no reason to suspect misappropriation or fraud.
The report alleged widespread misappropriation of aid and the use of forced
  labour by the army in the delta.
It included the misappropriation of technologies necessary to produce such
  products as antibiotics, amino acids, and vitamins.
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