my recollection, having LIU when I used it for wwftd, was that OED didn't have much to say at all; I didn't get an impression of embezzlement:

[A factitious word, simulating a L. form (cf. abscond, gratulate) of American origin, and jocular use.]
To make off, decamp.
1837–40 Haliburton Clockmaker (1862) 363 Absquotilate it in style, you old skunk,+and show the gentlemen what you can do. 1858 Dow Serm. I. 309 in Bartlett Dict. Amer., Hope's brightest visions absquatulate. 1861 J. Lamont Seahorses xi. 179 He [an old bull-walrus] heard us, and lazily awaking, raised his head and prepared to absquatulate.


edit: on third thought, Juan, could you have been thinking of the word 'defalcate', which means 'to engage in embezzlement'?