Source : Webster's Revised Unabridged Dictionary (1913)

Defalcate \De*fal"cate\, v. t. [imp. & p. p. {Defalcated}; p.
   pr. & vb. n. {Defalcating}.] [LL. defalcatus, p. p. of
   defalcare to deduct, orig., to cut off with a sickle; L. de-
   + falx, falcis, a sickle. See {Falchion}.]
   To cut off; to take away or deduct a part of; -- used chiefly
   of money, accounts, rents, income, etc.

         To show what may be practicably and safely defalcated
         from them [the estimates].               --Burke.

Defalcate \De*fal"cate\, v. i.
   To commit defalcation; to embezzle money held in trust.
   ``Some partner defalcating, or the like.'' --Carlyle.

Source : WordNet®

defalcate
     v : appropriate (as property entrusted to one's care)
         fraudulently to one's own use; "The accountant embezzled
         thousands of dollars while working for the wealthy
         family" [syn: {embezzle}, {peculate}, {misappropriate}, {malversate}]