Final answer:
Commingling is the act of an agent illegally mixing their money with client money. It is a serious ethical and legal violation that can occur in various industries.
Step-by-step explanation:
The act of an agent illegally mixing their own money with client money is called commingling. Commingling is a serious ethical and legal violation, as it breaches the duty of care and loyalty that an agent owes to their clients.
Commingling can occur in various industries, such as banking, finance, and real estate. For example, a real estate agent who mixes their personal funds with escrow funds intended for the purchase of a property would be considered to have engaged in commingling.
Commingling is illegal because it puts clients' funds at risk and can lead to financial loss or fraud. Agents are required to handle client funds separately and keep accurate records to prevent commingling.