Defalcation Legal Meaning and Definition

Here is a simplified definition of the legal term Defalcation.

Defalcation (noun)

1. The action of withholding or misusing funds that were allocated for a specific purpose. This term is often used to describe dishonest actions by individuals in positions of trust, such as public officials or fiduciaries.

2. The sum of money that was misused or improperly withheld.

Example in a sentence: The auditor discovered a significant defalcation in the town's treasury funds, pointing to possible corruption within the administration.