Until you change and become both more introspective and empathetic (as well as reflective based on what you have wrote), you are definitely unqualified intellectually irrespective of your statistics. And the inability to understand that you're going to be applying and studying with a group and under people that is at least the equal if not superior intellectually and in competition is going to be a wakeup call someday.
But I suppose with your ethical compass that you will gamble on ensuring that you get the record expunged, enact your hypothetical plan because it seems rational for a dream, and succeed because most adcoms will probably not do the due diligence necessary (although I do not recommend applying for the civil service who will definitely do that due diligence even with expunged records). That may be so, and who are we but electrons in cyberspace? I will warn you that it may be this incident, it may be something else, but given your lack of reflection, you'll take care of yourself if you do not change, and from what you wrote, I suspect that you certainly have the same character that you did when you embezzled those funds.
We have given respectful answers. I am going say for my colleagues that I'm sure this thought had crossed our mind: for someone who is trying to make things right after an extremely serious error in judgment, what sort of character would even suggest hiding the matter as a calculation given the realities of professional ethics)? I do urge you to read that story anyway, it may help change your pathway (at least with the bottom line of trying to avoid certain outcomes or obviously bad plans). But if you cannot put yourself in our shoes about that response, then I would argue that you have not met us with the same level of intellectual or emotional respect given your response on the hypothetical plan.