defalcation

noun

1. (countable, uncountable)The act of cancelling part of a claim by deducting a smaller claim which the claimant owes to the defendant.
2. (countable, uncountable)Embezzlement.

   “Granting that Mr. Ireland had gone into his office at ten minutes to ten o'clock at night for the purpose of extracting £5000 worth of notes and gold from the bank safe, whilst giving the theft the appearance of a night burglary; […] why should he, at nine o'clock the following morning, fall in a dead faint and get cerebral congestion at sight of a defalcation he knew had occurred?”

   ““Why should Eldridge commit murder?[…]There was only one possible motive—namely, he wished to avoid detection as James Selby of Anaconda Ltd. He had settled down in Estrepps. There were several persons in the town who had suffered from his defalcations.[…]””