Illinois law under 720 ILCS 5/17-1 prohibits a wide range of deceptive practices, including various types of bank-related fraud. In terms of bank fraud, specifically, Section 17-1 criminalizes the use of false statements, possession of stolen or fraudulently obtained checks, and possession of check fraud implements. These criminal offenses can lead to misdemeanor or felony charges and the real possibility of criminal fines and confinement in jail or prison.
Before progressing any further, it is important to note that these bank fraud offenses are subject to civil liability on top of criminal penalties. An offender must return any amount gained through bank fraud. Failure to do so can result in civil damages between $100 and $1,500 plus reasonable attorney’s fees and court costs.
1. False Statement Bank Fraud
720 ILCS 5/17-1(C)(1) governs the offense of false statement bank fraud. Under this subsection, the term false statement can refer to the identity, address, or employment of any person, firm, or corporation. In order to qualify as bank fraud, a false statement must satisfy two elements.
The first element requires a person to make a false statement in writing with the intent to commit fraud, knowing or having a reason to know that the statement is false.
The second element requires a person to use the false statement in an attempt to obtain: (a) an account with a bank or similar financial institution; (b) credit from a bank or similar financial institution; or (c) services from a currency exchange.
A violation of Subsection (C)(1) is charged as a Class A misdemeanor in Illinois. If convicted of this charge, the penalties can include a maximum of 12 months in jail and $2,500 in criminal fines.
2. Possession of Stolen/Fraudulent Checks
720 ILCS 5/17-1(C)(2) addresses the offense of possession of stolen or fraudulently obtained checks. Under Illinois law, a person must have valid authorization to possess, transfer, negotiate, or present for payment any check, draft, or similar device.
It qualifies as a violation of this subsection when a person intends to access funds in a financial institution account, knowing or having a reason to know that such access lacks valid authorization. Typically, this offense occurs through the possession, transfer, negotiation, or presentment of any stolen or fraudulently obtained check, draft, or similar device. But it can also happen by false statement or misrepresentation.
A violation of Subsection (C)(2) can be charged as a Class A misdemeanor in Illinois and punishable as explained above. But if a person violates this subsection three or more times within a one-year period, they can face Class 4 felony charges instead.
If convicted of a Class 4 felony in Illinois, the penalties can include one to three years in prison and up to $25,000 in criminal fines.
3. Possession of Implements of Check Fraud
720 ILCS 5/17-1(C)(3) explains the offense of possession of implements of check fraud. This subsection prohibits any person from possessing any check imprinter, signature imprinter, or “certified” stamp without authorization. To qualify as a violation of this subsection, such a person must also demonstrate an intent to commit fraud.
A violation of Subsection (C)(3) can be charged as a Class A misdemeanor in Illinois. But if a person violates this subsection three or more times within a one-year period, they can face Class 4 felony charges instead. In either case, the statutory punishment will be substantially similar to those described above.