093_HB3053ham001 LRB093 06827 JLS 12689 a 1 AMENDMENT TO HOUSE BILL 3053 2 AMENDMENT NO. . Amend House Bill 3053 by replacing 3 everything after the enacting clause with the following: 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 -2- LRB093 06827 JLS 12689 a 1 paying any stockholder any part of the capital stock 2 of the corporation except in the manner provided by 3 law; 4 (C) discounting or receiving any note or other 5 evidence of debt in payment of an installment of 6 capital stock actually called in and required to be 7 paid, or with purpose of providing the means of 8 making such payment; 9 (D) receiving or discounting any note or other 10 evidence of debt with the purpose of enabling any 11 stockholder to withdraw any part of the money paid 12 in by him on his stock; or 13 (E) applying any portion of the funds of such 14 corporation, directly or indirectly, to the purchase 15 of shares of its own stock, except in the manner 16 provided by law; or 17 (2) being a director of officer of a corporation, 18 he, with purpose to defraud: 19 (A) issues, participates in issuing, or 20 concurs in a vote to issue any increase of its 21 capital stock beyond the amount of the capital stock 22 thereof, duly authorized by or in pursuance of law; 23 (B) sells, or agrees to sell, or is directly 24 interested in the sale of any share of stock of such 25 corporation, or in any agreement to sell such stock, 26 unless at the time of the sale or agreement he is an 27 actual owner of such share, provided that the 28 foregoing shall not apply to a sale by or on behalf 29 of an underwriter or dealer in connection with a 30 bona fide public offering of shares of stock of such 31 corporation; 32 (C) executes a scheme or attempts to execute a 33 scheme to obtain any share of stock of such 34 corporation by means of false representation; or -3- LRB093 06827 JLS 12689 a 1 (3) Being a director of officer of a corporation, 2 he with purpose to defraud or evade a financial 3 disclosure reporting requirement of this State or of 4 Section 13(A) or 15(D) of the Securities Exchange Act of 5 1934, as amended, 15 U. S. C. 78M(A) or 78O(D), he: 6 (A) causes or attempts to cause a corporation 7 or accounting firm representing the corporation or 8 any other individual or entity to fail to file a 9 financial disclosure report as required by State or 10 federal law; or 11 (B) causes or attempts to cause a corporation 12 or accounting firm representing the corporation or 13 any other individual or entity to file a financial 14 disclosure report, as required by State or federal 15 law, that contains a material omission or 16 misstatement of fact. 17 (b) If the benefit derived from a violation of this 18 Section is $500,000 or more, the offender is guilty of a 19 Class 2 felony. If the benefit derived from a violation of 20 this Section is less than $500,000, the offender is guilty of 21 a Class 3 felony. 22 (720 ILCS 5/17-27 new) 23 Sec. 17-27. Fraud in insolvency. 24 (a) A person commits a crime if, knowing that 25 proceedings have or are about to be instituted for the 26 appointment of a receiver or other person entitled to 27 administer property for the benefit of creditors, or that any 28 other composition or liquidation for the benefit of creditors 29 has been or is about to be made, he: 30 (1) destroys, removes, conceals, encumbers, 31 transfers, or otherwise deals with any property or 32 obtains any substantial part of or interest in the 33 debtor's estate with purpose to defeat or obstruct the -4- LRB093 06827 JLS 12689 a 1 claim of any creditor, or otherwise to obstruct the 2 operation of any law relating to administration of 3 property for the benefit of creditors; 4 (2) knowingly falsifies any writing or record 5 relating to the property; or 6 (3) knowingly misrepresents or refuses to disclose 7 to a receiver or other person entitled to administer 8 property for the benefit of creditors, the existence, 9 amount, or location of the property, or any other 10 information which the actor could be legally required to 11 furnish in relation to such administration. 12 (b) If the benefit derived from a violation of this 13 Section in $500,000 or more, the offender is guilty of a 14 Class 2 felony. If the benefit derived from a violation of 15 this Section is less than $500,000, the offender is guilty of 16 a Class 3 felony. 17 (720 ILCS 5/29A-3) (from Ch. 38, par. 29A-3) 18 Sec. 29A-3. Sentence. 19 (a) If the benefit offered, conferred, or agreed to be 20 conferred, solicited, accepted or agreed to be accepted is 21 less than $500,000, commercial bribery or commercial bribe 22 receiving is a Class A misdemeanor and the sentence shall 23 include, but not be limited to,
business offense for whicha 24 fine shall be imposednot to exceed $5,000. 25 (b) If the benefit offered, conferred, or agreed to be 26 conferred, solicited, accepted, or agreed to be accepted in 27 violation of this Article is $500,000 or more, the offender 28 is guilty of a Class 3 felony. 29 (Source: P.A. 77-2638.) 30 (720 ILCS 5/29A-4 new) 31 Sec. 29A-4. Corporate Crime Fund. 32 (a) In addition to any fines, penalties, and assessments -5- LRB093 06827 JLS 12689 a 1 otherwise authorized under this Code, any person convicted of 2 a violation of this Article or Section 17-26 or 17-27 of this 3 Code shall be assessed a penalty of not more than 3 times the 4 value of all property involved in the criminal activity. 5 (b) The penalties assessed under subsection (a) shall be 6 deposited into the Corporate Crime Fund, a special fund 7 hereby created in the State treasury. Moneys in the Fund 8 shall be used to make restitution to a person who has 9 suffered property loss as a result of violations of this 10 Article. The court may determine the reasonable amount, 11 terms, and conditions of the restitution. In determining the 12 amount and method of payment of restitution, the court shall 13 take into account all financial resources of the defendant.".