32-10-405. Improper disbursement of escrow, reserves, or escrow closing funds -- misstatement or omission of material fact pertaining to mortgage loan -- misappropriation of funds. (1) Any person subject to the provisions of this chapter, including but not limited to a licensee, a director, partner, or shareholder controlling an ownership interest of 10% or more of a licensee, or an officer, trustee, agent, independent contractor, or employee of a licensee may not:
     (a) knowingly or recklessly take, withhold, disburse, or cause the disbursal of escrow funds, trust funds, reserves, or escrow closing funds except as permitted by this chapter or knowingly or recklessly direct, participate in, or aid or abet in a material way any activity that constitutes theft or fraud in connection with any escrow funds, trust funds, reserves, or escrow closing funds transaction; or
     (b) knowingly or recklessly make or cause to be made any misstatement or omission of a material fact pertaining to mortgage lending.
     (2) If a violation of this section also results in a criminal conviction under applicable criminal law, the court shall, in addition to any other punishment imposed, order the person convicted to make full restitution to injured parties.

     History: En. Sec. 20, Ch. 369, L. 2007.