peculation

The act or practice of peculating, or of defrauding the public by appropriating to one's own use the money or goods intrusted to one's care for management or disbursement; embezzlement.

Every British subject . . . active in the discovery of peculations has been ruined.

Fraudulent misappropriation to one's own use of money or goods entrusted to one's care. See also Embezzlement.

The unlawful appropriation, by a depositary of public funds, of the government property entrusted to the care of the depository; the fraudulent diversion to an individual's personal use of money or goods entrusted to that person's care.

The noun has one meaning:

Meaning #1: the fraudulent appropriation of funds or property entrusted to your care but actually owned by someone else
  Synonyms: embezzlement, defalcation, misapplication, misappropriation