Misapplication of FUNDS

Misapplication of construction funds. Any person who receives payment on account of improving
real property must use the funds to pay for all amounts then due and owing. If a person knowingly uses
funds paid on account of a particular job, without paying the funds to subs, suppliers, and/or laborers
whose funds are due for the work paid, is guilty of misapplication of construction funds. This crime is
a felony.

I think a lot of contractors don’t understand this….