People v. Levitt

The defendant is charged with a violation of section 36-b of the Lien Law. That statute as in effect October 1, 1930, reads as follows:

“ § 36-b. Subcontractor who diverts funds guilty of larceny. The funds received by a subcontractor from an owner or contractor for the improvement of real property are hereby declared to constitute trust funds in the hands of such subcontractor to be applied first to the payment of the claims of laborers and materialmen, arising out of the improvement and to the payment of premiums, on surety bond or bonds and premiums on insurance accruing during the making…