The Collaborative International Dictionary of English v.0.48:

Embezzlement \Em*bez"zle*ment\, n.
   The fraudulent appropriation of property by a person to whom
   it has been intrusted; as, the embezzlement by a clerk of his
   employer's money; embezzlement of public funds by the public
   officer having them in charge.
   [1913 Webster]

   Note: Larceny denotes a taking, by fraud or stealth, from
         another's possession; embezzlement denotes an
         appropriation, by fraud or stealth, of property already
         in the wrongdoer's possession. In England and in most
         of the United States embezzlement is made indictable by
         statute.
         [1913 Webster]

WordNet (r) 3.0 (2006):

embezzlement
    n 1: the fraudulent appropriation of funds or property entrusted
         to your care but actually owned by someone else [syn:
         embezzlement, peculation, defalcation,
         misapplication, misappropriation]