The Collaborative International Dictionary of English v.0.48:

Peculate \Pec"u*late\, v. i. [imp. & p. p. Peculated; p. pr. &
   vb. n. Peculating.] [L. peculatus, p. p. of peculari to
   peculate, akin to peculium private property. See Peculiar.]
   To appropriate to one's own use the property of the public;
   to steal public moneys intrusted to one's care; to embezzle.
   [1913 Webster]

         An oppressive, . . . rapacious, and peculating
         despotism.                               --Burke.
   [1913 Webster]

WordNet (r) 3.0 (2006):

peculate
    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]