Which term describes a form of conversion that occurs when a broker is required to produce money or property belonging to another in the normal course of business and either cannot or will not produce the money or property?

• A. Concealment
• B. Breach of Trust
• C. Failure to account
• D. Aggravating circumstances

Answer: (C)

This question tests recognizing a specific misappropriation by a broker who is entrusted with someone else’s money or property and cannot or will not return it. When a broker must produce money or property and fails to do so, the act is described as failure to account. It’s a precise form of conversion tied to the fiduciary duty to account for entrusted assets. Concealment would involve hiding assets rather than failing to deliver them; breach of trust is a broader fiduciary violation, not the exact failure to produce funds or property; and aggravating circumstances isn’t the proper label for this act.