It does but that doesn't mean what you think it says. Unless you can show that they accepted that money with the intent to not use it for the stated purpose, the debt wasn't incurred through fiduciary fraud. The following are the essential elements
the debtor made a representation;
the debtor knew at the time the representation was false;
the debtor made the representation with the intention and purpose of deceiving the creditor;
the creditor relied on the representation; and
the creditor sustained damage as the proximate result of the representation.
Just because they took the money and ended up spending it on something else doesn't make it a non-dischargable debt.

