Misappropriation

Misappropriation is the act of wrongfully taking or using something—usually property or funds—that belongs to another, for one's own use or benefit. The term is used in everyday speech and in legal contexts, where it often denotes unauthorized or improper use by someone who has been entrusted with the asset or information.

In criminal and civil law, misappropriation commonly refers to misusing money or property that has been entrusted to the actor, such as an employee who diverts company funds or a fiduciary who uses client assets for personal purposes. Depending on jurisdiction, such conduct may be charged as embezzlement, theft, fraud, or a specific offense of misappropriation of funds. Civil remedies may include damages, disgorgement of ill-gotten gains, and injunctions.

Misappropriation can also refer to the improper acquisition, disclosure, or use of trade secrets or confidential information. In this context, it typically involves obtaining or using restricted information without permission, often in violation of trade-secret laws and non-disclosure agreements.

Key elements typically include unauthorized use or control, intent to deprive the owner of benefits, and reliance on the fiduciary relationship or access that enabled the act. Defenses may include lack of intent, cooperation or consent by the owner, or a legal right to use the property under a contract.

Penalties vary by jurisdiction and context, ranging from civil damages and disgorgement to criminal penalties such as fines and imprisonment. The concept intersects with corporate governance, anti-fraud measures, and ethics policies in organizations.