misappropriation
Definition
Misappropriation means someone took money, property, or confidential information that belonged to someone else and used it for their own benefit without permission. This often comes up when an employee, partner, or trusted person steals funds from a business or uses the company's trade secrets to benefit a competitor.
Example
If your bookkeeper quietly transfers company money into their personal account over several months, that is misappropriation of funds. It can also happen if a departing employee takes your customer list and uses it to poach clients for a new competing business.
Watch Out
Misappropriation can be both a civil matter where you sue to recover losses and a criminal matter where the person faces charges, so you should contact a lawyer immediately if you suspect it is happening in your business.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.