[1] : The Collaborative International Dictionary of English v.0.48

malversation \mal`versa"tion\, n. f., fr. malverser to be
   corrupt in office, fr. l. male ill + versari to move about,
   to occupy one's self, vertere to turn. see malice, and
   verse.
   evil conduct; fraudulent practices; misbehavior, corruption,
   or extortion in office.
   1913 webster
see also:
malice verse 

[2] : WordNet (r) 2.0

malversation
     n : misconduct in public office

[3] : Bouvier's Law Dictionary, Revised 6th Ed (1856)

malversation, french law. this word is applied to all punishable faults 
committed in the exercise of an office, such as corruptions, exactions, 
extortions and larceny. merl. repert. h.t. 

Malversation >> M Words
Malversation, definition of term: Malversation
malversation_pag1.html