Fraud, Embezzlement, Conversion Clause Samples

Fraud, Embezzlement, Conversion. If Employer receives any funds earned by or due to Contractor, Employer shall act as a fiduciary, on behalf of Contractor. Employer shall keep such funds in a separate account, and may not commingle funds with Employer’s operating account, reserve account or personal account. Employer shall not maintain custody of such funds, but must promptly forward such funds by mail, Priority Mail or PayPal to Contractor. If Employer commingles Contractor funds with Employer’s business funds, or personal funds, or retains custody for more than thirty (30) days, or uses Contractor’s funds for any personal or business purpose, such action shall be evidence of criminal intent to commit fraud, embezzlement or conversion of funds, and a breach of fiduciary duty.