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]