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.