Source : Webster's Revised Unabridged Dictionary (1913)

Misapplication \Mis*ap`pli*ca"tion\, n.
   A wrong application. --Sir T. Browne.

Source : WordNet®

misapplication
     n 1: wrong use or application
     2: the fraudulent appropriation of funds or property entrusted
        to your care but actually owned by someone else [syn: {embezzlement},
         {peculation}, {defalcation}, {misappropriation}]