Definition - What does Misappropriation mean?

Misappropriation refers to when a person takes an asset from a company or other third party, and puts it to use in a way that was not intended.

Misappropriation is always in relation to assets, such as property or cash. This can happen in the government as well as in private businesses.

A sentence for misappropriation can carry both a large monetary fine and incarceration.

Justipedia explains Misappropriation

Usually in a misappropriation case, the defendant is a person who has been authorized by another person or a business to perform a task that is financially based. The misappropriation happens when the person spends the money in another way. The way in which the money is misappropriated could benefit the defendant directly or could even be done for no benefit of the defendant. For example, a civil servant who takes money from one fund to facilitate spending in another fund would still be subject to a misappropriation hearing, even though the person did not directly benefit from it.

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