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 which a
24    fine shall be imposed not 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.".