peculate

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pec·u·late / ˈpekyəˌlāt/ • v. [tr.] formal embezzle or steal (money, esp. public funds): the people accused them of having peculated the public money.DERIVATIVES: pec·u·la·tion / ˌpekyəˈlāshən/ n.pec·u·la·tor / -ˌlātər/ n.