Embezzlement

Embezzlement means:
the fraudulent appropriation, for one's own use, of property lawfully in one's possession; a type of larceny. Embezzlement is often associated with bank employees, public officials, or officers of organizations, who may in the course of their lawful activities come into possession of property, such as money, actually owned by others. Embezzlement income is taxable when appropriated, but the embezzlement loss is deductible in the year of discovery.