Vocabulary question here: Is this "embezzlement"? I'm not sure because the use of funds were for legitimate services even if they are owned by James and his fa

Vocabulary question here: Is this "embezzlement"? I'm not sure because the use of funds were for legitimate services even if they are owned by James and his family. Is there a different word to describe the siphoning of company funds by directing business to self-affiliated parties? Is this covered by "nepotism"? (Thanks, in advance, for any clarifications.)