As verbs the difference between defraud and misappropriate
is that defraud
is to obtain money or property by fraud; to swindle while misappropriate
is to use something wrongly, or illegally.
To obtain money or property by fraud; to swindle.
*:I had never defrauded a man of a farthing, nor called him knave behind his back. But now the last rag that covered my nakedness had been torn from me. I was branded a blackleg, card-sharper, and murderer.
To use something wrongly, or illegally