What is the consequence for a licensee who commingles personal funds?

The consequence for a licensee who commingles personal funds primarily relates to the ethical and legal obligations that govern the handling of client or trust funds. When a licensee mixes their personal funds with those of clients, this creates a significant conflict of interest and a breach of fiduciary duty, which can lead to severe penalties.

In this context, the option indicating that the licensee will be charged with embezzlement is accurate because commingling funds is a serious violation. Embezzlement occurs when someone misappropriates funds that do not belong to them, and commingling can be interpreted as a step toward that. This action undermines the trust placed in the licensee and can lead to legal consequences, including criminal charges.

Furthermore, the implications of embezzlement can include not just immediate financial penalties, but long-term damage to the licensee's career and reputation within their professional field. It's critical for licensees to maintain clear boundaries and accurate records to ensure compliance with legal standards and protect both their clients and themselves.