Public Act 93-0496
HB3053 Enrolled LRB093 06827 JLS 06972 b
AN ACT concerning business practices.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by adding
Section 5.595 as follows:
(30 ILCS 105/5.595 new)
Sec. 5.595. The Corporate Crime Fund.
Section 10. The Criminal Code of 1961 is amended by
changing Section 29A-3 and adding Sections 17-26, 17-27, and
29A-4 as follows:
(720 ILCS 5/17-26 new)
Sec. 17-26. Misconduct by a corporate official.
(a) A person is guilty of a crime when:
(1) being a director of a corporation, he knowingly
with a purpose to defraud, concurs in any vote or act of
the directors of the corporation, or any of them, which
has the purpose of:
(A) making a dividend except in the manner
provided by law;
(B) dividing, withdrawing or in any manner
paying any stockholder any part of the capital stock
of the corporation except in the manner provided by
law;
(C) discounting or receiving any note or other
evidence of debt in payment of an installment of
capital stock actually called in and required to be
paid, or with purpose of providing the means of
making such payment;
(D) receiving or discounting any note or other
evidence of debt with the purpose of enabling any
stockholder to withdraw any part of the money paid
in by him on his stock; or
(E) applying any portion of the funds of such
corporation, directly or indirectly, to the purchase
of shares of its own stock, except in the manner
provided by law; or
(2) being a director or officer of a corporation,
he, with purpose to defraud:
(A) issues, participates in issuing, or
concurs in a vote to issue any increase of its
capital stock beyond the amount of the capital stock
thereof, duly authorized by or in pursuance of law;
(B) sells, or agrees to sell, or is directly
interested in the sale of any share of stock of such
corporation, or in any agreement to sell such stock,
unless at the time of the sale or agreement he is an
actual owner of such share, provided that the
foregoing shall not apply to a sale by or on behalf
of an underwriter or dealer in connection with a
bona fide public offering of shares of stock of such
corporation;
(C) executes a scheme or attempts to execute a
scheme to obtain any share of stock of such
corporation by means of false representation; or
(3) being a director or officer of a corporation,
he with purpose to defraud or evade a financial
disclosure reporting requirement of this State or of
Section 13(A) or 15(D) of the Securities Exchange Act of
1934, as amended, 15 U. S. C. 78M(A) or 78O(D), he:
(A) causes or attempts to cause a corporation
or accounting firm representing the corporation or
any other individual or entity to fail to file a
financial disclosure report as required by State or
federal law; or
(B) causes or attempts to cause a corporation
or accounting firm representing the corporation or
any other individual or entity to file a financial
disclosure report, as required by State or federal
law, that contains a material omission or
misstatement of fact.
(b) If the benefit derived from a violation of this
Section is $500,000 or more, the offender is guilty of a
Class 2 felony. If the benefit derived from a violation of
this Section is less than $500,000, the offender is guilty of
a Class 3 felony.
(720 ILCS 5/17-27 new)
Sec. 17-27. Fraud in insolvency.
(a) A person commits a crime if, knowing that
proceedings have or are about to be instituted for the
appointment of a receiver or other person entitled to
administer property for the benefit of creditors, or that any
other composition or liquidation for the benefit of creditors
has been or is about to be made, he:
(1) destroys, removes, conceals, encumbers,
transfers, or otherwise deals with any property or
obtains any substantial part of or interest in the
debtor's estate with purpose to defeat or obstruct the
claim of any creditor, or otherwise to obstruct the
operation of any law relating to administration of
property for the benefit of creditors;
(2) knowingly falsifies any writing or record
relating to the property; or
(3) knowingly misrepresents or refuses to disclose
to a receiver or other person entitled to administer
property for the benefit of creditors, the existence,
amount, or location of the property, or any other
information which the actor could be legally required to
furnish in relation to such administration.
(b) If the benefit derived from a violation of this
Section is $500,000 or more, the offender is guilty of a
Class 2 felony. If the benefit derived from a violation of
this Section is less than $500,000, the offender is guilty of
a Class 3 felony.
(720 ILCS 5/29A-3) (from Ch. 38, par. 29A-3)
Sec. 29A-3. Sentence.
(a) If the benefit offered, conferred, or agreed to be
conferred, solicited, accepted or agreed to be accepted is
less than $500,000, commercial bribery or commercial bribe
receiving is a Class A misdemeanor and the sentence shall
include, but not be limited to, business offense for which a
fine shall be imposed not to exceed $5,000.
(b) If the benefit offered, conferred, or agreed to be
conferred, solicited, accepted, or agreed to be accepted in
violation of this Article is $500,000 or more, the offender
is guilty of a Class 3 felony.
(Source: P.A. 77-2638.)
(720 ILCS 5/29A-4 new)
Sec. 29A-4. Corporate Crime Fund.
(a) In addition to any fines, penalties, and assessments
otherwise authorized under this Code, any person convicted of
a violation of this Article or Section 17-26 or 17-27 of this
Code shall be assessed a penalty of not more than 3 times the
value of all property involved in the criminal activity.
(b) The penalties assessed under subsection (a) shall be
deposited into the Corporate Crime Fund, a special fund
hereby created in the State treasury. Moneys in the Fund
shall be used to make restitution to a person who has
suffered property loss as a result of violations of this
Article. The court may determine the reasonable amount,
terms, and conditions of the restitution. In determining the
amount and method of payment of restitution, the court shall
take into account all financial resources of the defendant.