New York License Law
Under New York law, a licensee who converts client funds from an escrow account to their own use has committed:
AA technical violation requiring a warning only
BConversion — a serious offense that is grounds for license revocation and may constitute criminal larceny✓ Correct
CCommingling, which requires only a civil penalty
DAn act subject to a maximum $1,000 fine
Explanation
Converting client funds from escrow to personal use is a serious offense under New York law. It constitutes conversion (the civil tort) and may constitute criminal larceny or other theft offenses.
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