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misappropriate (v.)

"put to wrong use," 1803, from mis- (1) "badly, wrongly" + appropriate (v.). Related: Misappropriated; misappropriating.

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Definitions of misappropriate from WordNet

misappropriate (v.)
appropriate (as property entrusted to one's care) fraudulently to one's own use;
Synonyms: embezzle / defalcate / peculate / malversate
From wordnet.princeton.edu