Illinois Compiled Statutes 215 ILCS 159/72 – Crimes and offenses
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(a) A person acting in this State as a viatical settlement provider without having been licensed pursuant to Section 10 of this Act who willfully violates any provision of this Act or any rule adopted or order issued under this Act is guilty of a Class A misdemeanor and may be subject to a fine of not more than $3,000. When such violation results in a loss of more than $10,000, the person shall be guilty of a Class 3 felony and may be subject to a fine of not more than $10,000.
(b) A person acting in this State as a viatical settlement broker without having met the licensure and notification requirements established by Section 10 of this Act who willfully violates any provision of this Act or any rule adopted or order issued under this Act is guilty of a Class A misdemeanor and may be subject to a fine of not more than $3,000. When such violation results in a loss of more than $10,000, the person shall be guilty of a Class 3 felony and may be subject to a fine of not more than $10,000.
For details, see § Ill. Comp. Stat. 730 ILCS 5/5-4.5-40 and § Ill. Comp. Stat. 730 ILCS 5/5-4.5-55
(c) The Director may refer such evidence as is available concerning violations of this Act or any rule adopted or order issued under this Act or of the failure of a person to comply with the licensing requirements of this Act to the Attorney General or the proper county attorney who may, with or without such reference, institute the appropriate criminal proceedings under this Act.
(d) A person commits the offense of viatical settlement fraud when:
(1) For the purpose of depriving another of property
(b) A person acting in this State as a viatical settlement broker without having met the licensure and notification requirements established by Section 10 of this Act who willfully violates any provision of this Act or any rule adopted or order issued under this Act is guilty of a Class A misdemeanor and may be subject to a fine of not more than $3,000. When such violation results in a loss of more than $10,000, the person shall be guilty of a Class 3 felony and may be subject to a fine of not more than $10,000.
Attorney's Note
Under the Illinois Statutes, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| Class 3 felony | between 2 and 5 years | up to $25,000 |
| Class A misdemeanor | up to 1 year | up to $2,500 |
Terms Used In Illinois Compiled Statutes 215 ILCS 159/72
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fraud: Intentional deception resulting in injury to another.
- individual: shall include every infant member of the species homo sapiens who is born alive at any stage of development. See Illinois Compiled Statutes 5 ILCS 70/1.36
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
(c) The Director may refer such evidence as is available concerning violations of this Act or any rule adopted or order issued under this Act or of the failure of a person to comply with the licensing requirements of this Act to the Attorney General or the proper county attorney who may, with or without such reference, institute the appropriate criminal proceedings under this Act.
(d) A person commits the offense of viatical settlement fraud when:
(1) For the purpose of depriving another of property
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or for pecuniary gain any person knowingly:
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(A) presents, causes to be presented, or prepares
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with knowledge or belief that it will be presented to or by a viatical settlement provider, viatical settlement broker, life expectancy provider, viatical settlement purchaser, financing entity, insurer, insurance producer, or any other person, false material information, or conceals material information, as part of, in support of or concerning a fact material to one or more of the following:
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(i) an application for the issuance of a
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viatical settlement contract or insurance policy;
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(ii) the underwriting of a viatical
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settlement contract or insurance policy;
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(iii) a claim for payment or benefit pursuant
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to a viatical settlement contract or insurance policy;
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(iv) premiums paid on an insurance policy;
(v) payments and changes in ownership or
(v) payments and changes in ownership or
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beneficiary made in accordance with the terms of a viatical settlement contract or insurance policy;
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(vi) the reinstatement or conversion of an
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insurance policy;
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(vii) in the solicitation, offer,
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effectuation, or sale of a viatical settlement contract or insurance policy;
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(viii) the issuance of written evidence of a
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viatical settlement contract or insurance; or
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(ix) a financing transaction; or
(B) employs any plan, financial structure,
(B) employs any plan, financial structure,
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device, scheme, or artifice to defraud related to viaticated policies; or
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(C) enters into any act, practice, or arrangement
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which involves stranger-originated life insurance;
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(2) In furtherance of a scheme to defraud, to further
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a fraud, or to prevent or hinder the detection of a scheme to defraud any person knowingly does or permits his employees or agents to do any of the following:
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(A) remove, conceal, alter, destroy, or sequester
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from the Director the assets or records of a licensee or other person engaged in the business of viatical settlements;
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(B) misrepresent or conceal the financial
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condition of a licensee, financing entity, insurer, or other person;
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(C) transact the business of viatical settlements
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in violation of laws requiring a license, certificate of authority, or other legal authority for the transaction of the business of viatical settlements; or
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(D) file with the Director or the equivalent
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chief insurance regulatory official of another jurisdiction a document containing false information or otherwise conceals information about a material fact from the Director;
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(3) Any person knowingly steals, misappropriates, or
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converts monies, funds, premiums, credits, or other property of a viatical settlement provider, insurer, insured, viator, insurance policyowner, or any other person engaged in the business of viatical settlements or insurance;
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(4) Any person recklessly enters into, negotiates,
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brokers, or otherwise deals in a viatical settlement contract, the subject of which is a life insurance policy that was obtained by presenting false information concerning any fact material to the policy or by concealing, for the purpose of misleading another, information concerning any fact material to the policy, where the person or the persons intended to defraud the policy’s issuer, the viatical settlement provider or the viator; or
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(5) Any person facilitates the change of state of
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ownership of a policy or the state of residency of a viator to a state or jurisdiction that does not have a law similar to this Act for the express purposes of evading or avoiding the provisions of this Act.
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(e) For purposes of this Section, “person” means (i) an individual, (ii) a corporation, (iii) an officer, agent, or employee of a corporation, (iv) a member, agent, or employee of a partnership, or (v) a member, manager, employee, officer, director, or agent of a limited liability company who, in any such capacity described by this subsection (e), commits viatical settlement fraud.