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Adjective: misappropriated  ,mi-su'prow-pree,ey-tid
  1. Taken for your own use in violation of a trust
    "the banker absconded with misappropriated funds";
    - embezzled
Verb: misappropriate  ,mi-su'prow-pree,eyt
  1. Appropriate (as property entrusted to one's care) fraudulently to one's own use
    "The treasurer misappropriated funds from the charity";
    - embezzle, defalcate, peculate, malversate [archaic]

See also: illegal

Type of: rip [N. Amer, informal], rip off [informal], steal