The Collaborative International Dictionary of English v.0.48:

Peculation \Pec`u*la"tion\, n.
   The act or practice of peculating, or of defrauding the
   public by appropriating to one's own use the money or goods
   intrusted to one's care for management or disbursement;
   embezzlement.
   [1913 Webster]

         Every British subject . . . active in the discovery of
         peculations has been ruined.             --Burke.
   [1913 Webster]

WordNet (r) 3.0 (2006):

peculation
    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]