Jackson, a broker, is accused of commingling his money with trust account funds. His broker's trust account is a non-interest-bearing account. The current balance of the trust account is $430,000. The earnest deposit funds portion of the account totals $415,000; the broker's initial deposit totals $15,000. Is Jackson guilty of commingling?

Question

Isaiah Gonzalez

Business

29 July, 09:32

Jackson, a broker, is accused of commingling his money with trust account funds. His broker's trust account is a non-interest-bearing account. The current balance of the trust account is $430,000. The earnest deposit funds portion of the account totals $415,000; the broker's initial deposit totals $15,000. Is Jackson guilty of commingling?

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Sarahi Lucas · Answer 1

Yes, Jackson is guilty of commingling.

Explanation:

Initial deposit of Jackson to open the account must have only been about $200. The amount of $15,000 that he had deposited to open the account is considered excessive.

Commingling is the breach of trust in which a fiduciary (person holding a legal relationship of trust for beneficiaries) mixes the fund held in care for a client with their own funds making it a hard task determine which fund belongs to the client and fiduciary.

This is one of the major issue in case of any bankruptcy of the fiduciary. Funds are generally invested and the procure gains or losses accordingly based on the market situation. Law presumes to run the gains on the beneficiary account and losses on the fiduciary's account who are in the state of guilty of commingling.