The Collaborative International Dictionary of English v.0.48:

Embezzle \Em*bez"zle\ ([e^]m*b[e^]z"z'l), v. t. [imp. & p. p.
   Embezzled ([e^]m*b[e^]z"z'ld); p. pr. & vb. n.
   Embezzling.] [Norm. F. embeseiller to destroy; cf. OF.
   besillier to ill treat, ravage, destroy. Cf. Bezzle.]
   1. To appropriate fraudulently to one's own use, as property
      intrusted to one's care; to apply to one's private uses by
      a breach of trust; as, to embezzle money held in trust.
      [1913 Webster]

   2. To misappropriate; to waste; to dissipate in extravagance.
      [Obs.]
      [1913 Webster]

            To embezzle our money in drinking or gaming.
                                                  --Sharp.
      [1913 Webster]

WordNet (r) 3.0 (2006):

embezzle
    v 1: appropriate (as property entrusted to one's care)
         fraudulently to one's own use; "The accountant embezzled
         thousands of dollars while working for the wealthy family"
         [syn: embezzle, defalcate, peculate,
         misappropriate, malversate]

Moby Thesaurus II by Grady Ward, 1.0:

57 Moby Thesaurus words for "embezzle":
   abstract, abuse, and, annex, appropriate, bag, befoul, boost,
   borrow, convert, cop, crib, debase, defalcate, defile, defraud,
   desecrate, divert, extort, filch, foul, hook, lift, loot,
   make off with, maladminister, misapply, misappropriate, misemploy,
   mishandle, mismanage, misuse, nip, palm, peculate, pervert, pilfer,
   pinch, poach, pollute, profane, prostitute, purloin, run away with,
   rustle, scrounge, shoplift, snare, snatch, snitch, steal, swindle,
   swipe, take, thieve, violate, walk off with