Broker Thompson discovers that her escrow account has been overdrawn by $2,000 due to an accounting error. She immediately deposits $2,000 of her own funds to cover the shortage. What violation has occurred?
Correct Answer
A) Commingling of personal and trust funds
Depositing personal funds into an escrow account constitutes commingling, which is prohibited even when done to correct a shortage. Option B (conversion) would involve using trust funds for personal purposes. Option C is incorrect as the act of depositing personal funds creates a violation regardless of intent. Option D doesn't address the specific violation of mixing fund types.
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Related Topics & Key Terms
Key Terms:
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