Question

A broker has placed his own funds in the trust account along with the funds of several clients. He has written records of all funds in the account. The broker has paid some office expenses out of the account in an amount exceeding his own deposit. The broker is guilty of____________.

Answer 1

Answer: Conversion

Explanation:

Guilty of conversion is basically an unlawful act where an individual has exerted over another person's property without the consent of that person. Over here the broker has used funds to pay his office expenses. But that funds were not just his, it was of other people as well. Moreover, the funds he took out was more than the funds he actually contributed into the trust. Meaning he took portions of other people's funds as well as taking it without consent. Therefore, the broker is guilty of conversion.