Etymology
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defalcation (n.)

mid-15c., "act of cutting off or deducting a part" (originally in reference to withholding wages), from Old French defalcation and directly from Medieval Latin defalcationem (nominative defalcatio), noun of action from past-participle stem of defalcare, from de "off, away" (see de-) + Latin falx, falcem "sickle, scythe, pruning hook" (see falcate). Sense of "a monetary deficiency through breach of trust by one who has charge of funds belonging to others" is by 1846.

Origin and meaning of defalcation

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Definitions of defalcation

defalcation (n.)
the sum of money that is misappropriated;
defalcation (n.)
the fraudulent appropriation of funds or property entrusted to your care but actually owned by someone else;
From wordnet.princeton.edu