720 ILCS 5/17-27 – Fraud on Creditors
This law makes it illegal to hide, lie about, or wrongly move property to cheat people or businesses you owe money to.
This law says that someone breaks the law if they hide, lie about, or move property to keep creditors from getting what they are owed. It also covers cheating others by pretending to transfer property to avoid paying debts.
(a) Fraud in insolvency. A person commits this when they know their property is about to be sold to pay back people they own money to, and they:
- Destroy, hide, transfer, or handle property in a way meant to stop creditors from collecting what they are owed or to block the fair handling of their property for creditors.
- Knowingly fake or change any writing or record about their property.
- Knowingly lie to or refuse to give correct information to a person managing the property, like about what property exists, how much it is worth, or where it is.
Sentence: If the person gains $500,000 or more from doing this, it is a Class 2 felony. If the gain is less than $500,000, it is a Class 3 felony.
(b) Fraud in property transfer. A person commits this when they move or give away property on purpose to cheat or delay creditors from getting paid. This is a business offense with a fine up to $1,000.
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