Misappropriation of funds means the intentional, illegal use of the funds of another person for one's own use or other unauthorized purposes. Teeming and lading is a term that describes a practice whereby organizations attempt to hide a cash loss in one customers account by moving in money from another customers account. It is sometimes referred to as lapping, short banking, or delayed accounting. Essentially, teeming and the lading is a strategy that delays a payment deficit from showing up on a customers account by moving money around. Hence, older payments appear to have been covered before customers, or other organization members might notice any disparity. Additional Information Is teeming and lading illegal?Teeming and lading is a type of accounting fraud “ although it is not classified as theft “ and consequently, it is illegal. It may be picked up by regulatory bodies or internal members of the organization. Furthermore, teeming and lading are likely to be identified in a company audit. This can have serious consequences both for the individuals involved and the organization as a whole, which may have vicarious liability for failing to safeguard customer accounts.