defalcate
Concise Oxford English Dictionary © 2008 Oxford University Press:
defalcate /ˈdiːfalˌkeɪt/
▶verb formal embezzle (funds).
– derivatives
defalcation noun,
defalcator noun.
defalcation noun,
defalcator noun.
– origin C16 (earlier (ME) as defalcation in the sense ‘deduction, reduction’): from med. L. defalcat-, defalcare ‘to lop’.
'defalcate' also found in these Oxford entries:

