Property Management

A Wyoming property manager who invests client trust funds in the manager's brokerage operations account has committed:

AA permissible investment if the funds earn a return
BConversion, which is the unauthorized use of client funds and a serious violation of license law and fiduciary duty✓ Correct
COnly a minor bookkeeping error
DAn action that is legal if disclosed to the client

Explanation

Conversion is the unauthorized use of client funds for any purpose other than the client's benefit. Investing or using trust funds in the broker's operating account is both commingling and conversion—a serious violation that can result in license revocation, criminal charges, and civil liability.

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