Which of the following actions is not considered theft by conversion?

The correct answer is the action of loaning money and not returning it, as this scenario does not meet the specific elements of theft by conversion. Theft by conversion typically involves taking someone else's property and using it for a personal benefit without authorization. In the context of loaning money, while failing to return the funds may seem deceitful, it is not classified as theft by conversion because the original transaction (the loan) was legal and consensual.

In contrast, legally obtaining funds with the intent to use them for personal gain, obtaining property under false pretenses, and gaining rightful ownership of funds and using them illicitly all involve situations where property is obtained through deceit or a misuse of authorized possession, which fits the definition of theft by conversion. These actions illustrate a clear violation of trust or intent to permanently deprive the owner of their property, characterizing them as theft by conversion.