DEFALCATION Meaning and
Definition
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Defalcation is a noun that refers to the act or instance of embezzling or misappropriating funds entrusted to one's care. It involves the unauthorized and illegal use or mishandling of money or assets that have been assigned to an individual's care, typically in a professional or fiduciary capacity. Defalcation often occurs when someone entrusted with managing finances intentionally diverts funds for personal gain or fails to properly execute their financial responsibilities.
This term predominantly arises in legal and financial contexts, where defalcation can have serious consequences. It may involve an employee misusing company funds, a trustee stealing from a trust, or an individual mismanaging money in a business partnership. Defalcation generally implies a breach of trust and fiduciary duty, as the person responsible for the funds is expected to act in the best interest of the entity or person they serve.
The consequences of defalcation can be both financial and legal. The guilty party may face criminal charges, civil liabilities, and potential imprisonment. The defrauded party, such as a company or individual, may suffer financial losses and damage to their reputation. Therefore, defalcation is widely considered a serious offense that undermines the integrity of financial systems and can have far-reaching consequences for all parties involved.
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Diminution; fraudulent deficiency in money matters; breach of trust, applied to money.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for DEFALCATION
Etymology of DEFALCATION
The word "defalcation" is rooted in the Latin word "defalcare", which means "to deduct" or "to lop off". It is formed by combining the prefix "de", which denotes separation or removal, and the verb "falcare", meaning "to shear" or "to lop". Over time, "defalcation" evolved to refer specifically to the act of misappropriating or embezzling funds entrusted to one's care. The term entered English in the late 16th century, borrowing from the Latin roots.
Similar spelling words for DEFALCATION
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