Definition
  1. The act of embezzling or misappropriating funds, particularly by a person in a position of trust.

    synonyms:embezzlementmisappropriation
Origin & Use

The term 'defalcation' originates from the Latin word 'defalcare', which means 'to cut off'. This reflects the act of cutting off or misusing funds that one is supposed to manage responsibly.


This word is primarily used in legal and financial contexts, particularly when discussing breaches of fiduciary duty or financial misconduct.


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Defalcation is not a commonly used term in everyday conversation and is mostly encountered in specialized legal or financial discussions.

Examples

The accountant was charged with defalcation after it was discovered that he had been siphoning off funds for years.

In the world of finance, defalcation represents a severe breach of trust that can lead to criminal charges.

The company's reputation suffered greatly after the scandal of defalcation involving its treasurer came to light.

More Info

Defalcation might sound like a term only found in dusty legal tomes, but it refers to a serious issue that can arise in finance and governance. With roots in the Latin word for 'cutting off', it highlights the betrayal of trust when someone misappropriates funds. While not a part of everyday vocabulary, understanding defalcation can help individuals grasp the gravity of financial misconduct. So, next time you hear about a financial scandal, you might just have the perfect word to describe it!

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