State v. Reynolds

Bertha W. Reynolds and Dick Reynolds, husband and wife, were secretary-treasurer and president, respectively, of the Federal Security Company (hereinafter called the company), a corporation engaged generally in the buying and selling of real-estate mortgages and contracts for investors and borrowers, who answered published advertisements concerning the company’s services. Concurrently therewith, they operated the Dick Reynolds Insurance Agency (hereinafter referred to as the agency).

The company maintained two trust accounts, one for the investors’ payments and one for payments on contracts…