093_HB3053enr HB3053 Enrolled LRB093 06827 JLS 06972 b 1 AN ACT concerning business practices. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The State Finance Act is amended by adding 5 Section 5.595 as follows: 6 (30 ILCS 105/5.595 new) 7 Sec. 5.595. The Corporate Crime Fund. 8 Section 10. The Criminal Code of 1961 is amended by 9 changing Section 29A-3 and adding Sections 17-26, 17-27, and 10 29A-4 as follows: 11 (720 ILCS 5/17-26 new) 12 Sec. 17-26. Misconduct by a corporate official. 13 (a) A person is guilty of a crime when: 14 (1) being a director of a corporation, he knowingly 15 with a purpose to defraud, concurs in any vote or act of 16 the directors of the corporation, or any of them, which 17 has the purpose of: 18 (A) making a dividend except in the manner 19 provided by law; 20 (B) dividing, withdrawing or in any manner 21 paying any stockholder any part of the capital stock 22 of the corporation except in the manner provided by 23 law; 24 (C) discounting or receiving any note or other 25 evidence of debt in payment of an installment of 26 capital stock actually called in and required to be 27 paid, or with purpose of providing the means of 28 making such payment; 29 (D) receiving or discounting any note or other HB3053 Enrolled -2- LRB093 06827 JLS 06972 b 1 evidence of debt with the purpose of enabling any 2 stockholder to withdraw any part of the money paid 3 in by him on his stock; or 4 (E) applying any portion of the funds of such 5 corporation, directly or indirectly, to the purchase 6 of shares of its own stock, except in the manner 7 provided by law; or 8 (2) being a director or officer of a corporation, 9 he, with purpose to defraud: 10 (A) issues, participates in issuing, or 11 concurs in a vote to issue any increase of its 12 capital stock beyond the amount of the capital stock 13 thereof, duly authorized by or in pursuance of law; 14 (B) sells, or agrees to sell, or is directly 15 interested in the sale of any share of stock of such 16 corporation, or in any agreement to sell such stock, 17 unless at the time of the sale or agreement he is an 18 actual owner of such share, provided that the 19 foregoing shall not apply to a sale by or on behalf 20 of an underwriter or dealer in connection with a 21 bona fide public offering of shares of stock of such 22 corporation; 23 (C) executes a scheme or attempts to execute a 24 scheme to obtain any share of stock of such 25 corporation by means of false representation; or 26 (3) being a director or officer of a corporation, 27 he with purpose to defraud or evade a financial 28 disclosure reporting requirement of this State or of 29 Section 13(A) or 15(D) of the Securities Exchange Act of 30 1934, as amended, 15 U. S. C. 78M(A) or 78O(D), he: 31 (A) causes or attempts to cause a corporation 32 or accounting firm representing the corporation or 33 any other individual or entity to fail to file a 34 financial disclosure report as required by State or HB3053 Enrolled -3- LRB093 06827 JLS 06972 b 1 federal law; or 2 (B) causes or attempts to cause a corporation 3 or accounting firm representing the corporation or 4 any other individual or entity to file a financial 5 disclosure report, as required by State or federal 6 law, that contains a material omission or 7 misstatement of fact. 8 (b) If the benefit derived from a violation of this 9 Section is $500,000 or more, the offender is guilty of a 10 Class 2 felony. If the benefit derived from a violation of 11 this Section is less than $500,000, the offender is guilty of 12 a Class 3 felony. 13 (720 ILCS 5/17-27 new) 14 Sec. 17-27. Fraud in insolvency. 15 (a) A person commits a crime if, knowing that 16 proceedings have or are about to be instituted for the 17 appointment of a receiver or other person entitled to 18 administer property for the benefit of creditors, or that any 19 other composition or liquidation for the benefit of creditors 20 has been or is about to be made, he: 21 (1) destroys, removes, conceals, encumbers, 22 transfers, or otherwise deals with any property or 23 obtains any substantial part of or interest in the 24 debtor's estate with purpose to defeat or obstruct the 25 claim of any creditor, or otherwise to obstruct the 26 operation of any law relating to administration of 27 property for the benefit of creditors; 28 (2) knowingly falsifies any writing or record 29 relating to the property; or 30 (3) knowingly misrepresents or refuses to disclose 31 to a receiver or other person entitled to administer 32 property for the benefit of creditors, the existence, 33 amount, or location of the property, or any other HB3053 Enrolled -4- LRB093 06827 JLS 06972 b 1 information which the actor could be legally required to 2 furnish in relation to such administration. 3 (b) If the benefit derived from a violation of this 4 Section is $500,000 or more, the offender is guilty of a 5 Class 2 felony. If the benefit derived from a violation of 6 this Section is less than $500,000, the offender is guilty of 7 a Class 3 felony. 8 (720 ILCS 5/29A-3) (from Ch. 38, par. 29A-3) 9 Sec. 29A-3. Sentence. 10 (a) If the benefit offered, conferred, or agreed to be 11 conferred, solicited, accepted or agreed to be accepted is 12 less than $500,000, commercial bribery or commercial bribe 13 receiving is a Class A misdemeanor and the sentence shall 14 include, but not be limited to,
business offense for whicha 15 fine shall be imposednot to exceed $5,000. 16 (b) If the benefit offered, conferred, or agreed to be 17 conferred, solicited, accepted, or agreed to be accepted in 18 violation of this Article is $500,000 or more, the offender 19 is guilty of a Class 3 felony. 20 (Source: P.A. 77-2638.) 21 (720 ILCS 5/29A-4 new) 22 Sec. 29A-4. Corporate Crime Fund. 23 (a) In addition to any fines, penalties, and assessments 24 otherwise authorized under this Code, any person convicted of 25 a violation of this Article or Section 17-26 or 17-27 of this 26 Code shall be assessed a penalty of not more than 3 times the 27 value of all property involved in the criminal activity. 28 (b) The penalties assessed under subsection (a) shall be 29 deposited into the Corporate Crime Fund, a special fund 30 hereby created in the State treasury. Moneys in the Fund 31 shall be used to make restitution to a person who has 32 suffered property loss as a result of violations of this HB3053 Enrolled -5- LRB093 06827 JLS 06972 b 1 Article. The court may determine the reasonable amount, 2 terms, and conditions of the restitution. In determining the 3 amount and method of payment of restitution, the court shall 4 take into account all financial resources of the defendant.