Definition of "defalcation" [de•fal•ca•tion]

• The act of cancelling part of a claim by deducting a smaller claim which the claimant owes to the defendant. (noun)
• Embezzlement (noun)

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• "But the government school monopolists and Democrats want you to believe that protecting waste, incompetence and defalcation is for the children!"
• "The terms defalcation, misappropriation, and other fiscal irregularities refer to, but are not limited to:"
• "The amount of the defalcation is variously estimated at from two and a half to five millions, involving in losses several bankers and brokers."