N.Y. Real Prop. Acts. Law § 442-c

§ 442-c. Violations by salespersons; broker's responsibility. No\nviolation of a provision of this article by a real estate salesperson or\nemployee of a real estate broker shall be deemed to be cause for the\nrevocation or suspension of the license of the broker, unless it shall\nappear that the broker had actual knowledge of such violation or retains\nthe benefits, profits or proceeds of a transaction wrongfully negotiated\nby their salesperson or employee after notice of the salesperson's or\nemployee's misconduct. A broker shall be guilty of a misdemeanor for\nhaving any salesperson associated with their firm who has not secured\nthe required license authorizing such employment.\n