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Illinois Criminal Code of 1961

Article 17: Miscellaneous Fraud Crimes

This portion of Article 17 of the Illinois Criminal Code discusses three crimes related to fraud. The first, misconduct by a corporate official, occurs when a director of a corporation commits fraud. For example, if the director of a corporation issues an increase in capital stock beyond the actual amount of capital stock in existence, he or she could be convicted under this section of Illinois law.

Next, this section describes the crime of fraud in insolvency. If a person knows that bankruptcy or insolvency proceedings are occurring for the benefit of creditors and then misrepresents, falsifies, or otherwise intervenes in the property in question, he or she can be prosecuted for fraud in insolvency. This crime is a Class 3 felony.

Lastly, legislators discuss fraud relating to drug and alcohol screening tests. Anyone who buys, sells, or transports urine for the purpose of passing a drug or alcohol test may face criminal prosecution. A conviction carries a Class 4 felony status and a minimum fine of $1000.

Need an Illinois criminal defense attorney? If you've been arrested for fraud in Illinois, call our Chicago criminal defense attorneys today at (312) 466-9466 to discuss your case.

The text below comes from Article 17B of the Illinois Criminal Code of 1961. This law may have changed -- please read the important legal disclaimer at the bottom of this page.

Sec. 17-26. Misconduct by a corporate official.
    (720 ILCS 5/17-26)

(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. (Source: P.A. 93-496, eff. 1-1-04.)

Sec. 17-27. Fraud in insolvency.
    (720 ILCS 5/17-27)

(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. (Source: P.A. 93-496, eff. 1-1-04.)

Sec. 17-28. Defrauding drug and alcohol screening tests.
    (720 ILCS 5/17-28)

(a) It is unlawful for a person to: (1) manufacture, sell, give away, distribute, or market synthetic or human substances or other products in this State or transport urine into this State with the intent of using the synthetic or human substances or other products to defraud a drug or alcohol screening test;

(2) attempt to foil or defeat a drug or alcohol screening test by the substitution or spiking of a sample or the advertisement of a sample substitution or other spiking device or measure;

(3) adulterate synthetic or human substances with the intent to defraud a drug or alcohol screening test; or

(4) manufacture, sell, or possess adulterants that are intended to be used to adulterate synthetic or human substances for the purpose of defrauding a drug or alcohol screening test.

(b) For the purpose of determining the intent of the defendant who is charged with a violation of this Section, the trier of fact may take into consideration whether or not a heating element or any other device used to thwart a drug or alcohol screening test accompanies the sale, giving, distribution, or marketing of synthetic or human substances or other products or whether or not instructions that provide a method for thwarting a drug or alcohol screening test accompany the sale, giving, distribution, or marketing of synthetic or human substances or other products.

(c) Sentence. A violation of this Section is a Class 4 felony for which the court shall impose a minimum fine of $1,000.

(d) For the purposes of this Section, "drug or alcohol screening test" includes, but is not limited to, urine testing, hair follicle testing, perspiration testing, saliva testing, blood testing, fingernail testing, and eye drug testing. (Source: P.A. 93-691, eff. 7-9-04.)

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DISCLAIMER: These excerpts from the law are provided for reference purposes only. Visitors to our Chicago criminal defense lawyer website should be aware that Illinois criminal laws have been amended many times and that Illinois crime laws posted on this site may not be current. In addition, Illinois criminal case law defines precedents for legal determinations that are not defined in the original laws.

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