When the Breslin Treasury Defalcation became public, Gibson was forced to resign. He charged mismanagement of state government by Democrats, citing Tate's defalcation as evidence. The formal legal term is defalcation. Many title insurers have their own "defalcation units". Defalcation requires showing of conscious behavior or extreme recklessness. Defalcation, for example, applies when a debtor is acting in a fiduciary capacity. Defalcation occurs when a debtor commits a bad act while acting in a fiduciary capacity.