Denominative verb from the adjective φαῦλος (phi 140, phi 141, phi 142, phi 143), present indicative, third person singular; same or similar glossing in other lexica. Evidently quoted from somewhere -- probably the Septuagint (Proverbs 21.12 and 22.12, the second of which passages, φαυλίζει δὲ λόγους παράνομος , generated patristic comment).
cf. epsilon 3845.