The Collaborative International Dictionary of English v.0.48:

Misappropriate \Mis`ap*pro"pri*ate\, v. t.
   To appropriate wrongly; to use for a wrong purpose.
   [1913 Webster]

WordNet (r) 3.0 (2006):

misappropriate
    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:

27 Moby Thesaurus words for "misappropriate":
   abuse, befoul, convert, debase, defalcate, defile, desecrate,
   divert, embezzle, expropriate, filch, foul, maladminister,
   misapply, misemploy, mishandle, mismanage, misuse, peculate,
   pervert, pilfer, pocket, pollute, profane, prostitute, steal,
   violate