File #: 25-2405    Version: 1 Name: SPECIAL PURPOSE FUND FOR FRAUD CASE SETTLEMENTS
Type: Resolution Status: Held / Deferred in Committee
File created: 4/9/2025 In control: Finance Committee
On agenda: 4/10/2025 Final action:
Title: PROPOSED RESOLUTION CREATION OF SPECIAL PURPOSE FUND FOR FRAUD CASE SETTLEMENTS WHEREAS, the Cook County State's Attorney's Office ("SAO") has received settlement funds stemming from insurance fraud and other types of civil and criminal lawsuits; and WHEREAS, certain insurance fraud settlement collections were accounted within the General Fund in FY24, prior to the creation of this special purpose fund; and WHEREAS, under the Insurance Claims and Fraud Prevention Act (the "ICFPA") when the SAO has proceeded with an action, a portion of settlement funds shall be used to investigate, prosecute and prevent additional or future insurance fraud claims by augmenting existing budgets rather than replacing them, 740 ILCS 92/25(f); and WHEREAS, under the ICFPA when the SAO or the Attorney General decline to intervene in an action, the settlement funds allocated to the SAO shall be used to investigate, prosecute and prevent crime by augmenting existing budgets rather than replacing them,...
Sponsors: TONI PRECKWINKLE (President)
title
PROPOSED RESOLUTION

CREATION OF SPECIAL PURPOSE FUND FOR FRAUD CASE SETTLEMENTS

WHEREAS, the Cook County State's Attorney's Office ("SAO") has received settlement funds stemming from insurance fraud and other types of civil and criminal lawsuits; and

WHEREAS, certain insurance fraud settlement collections were accounted within the General Fund in FY24, prior to the creation of this special purpose fund; and

WHEREAS, under the Insurance Claims and Fraud Prevention Act (the "ICFPA") when the SAO has proceeded with an action, a portion of settlement funds shall be used to investigate, prosecute and prevent additional or future insurance fraud claims by augmenting existing budgets rather than replacing them, 740 ILCS 92/25(f); and

WHEREAS, under the ICFPA when the SAO or the Attorney General decline to intervene in an action, the settlement funds allocated to the SAO shall be used to investigate, prosecute and prevent crime by augmenting existing budgets rather than replacing them, 740 ILCS 92/25(h); and

WHEREAS, under the Illinois Consumer Fraud and Deceptive Business Practices Act (the "ICFDBA") funds collected pursuant to court order or settlement are payable to victims in restitution, and may also be applied to civil penalties and costs, 815 ILCS 505/7 and 10; and

WHEREAS, because an existing fund for these sources of funds currently does not exist within Cook County, a special purpose fund shall be created to separately account for such funds and shall be used pursuant to applicable state law, court orders and settlement agreements.

NOW THEREFORE BE IT RESOLVED, that the Cook County Budget Director and Comptroller are authorized to create and implement a Special Purpose Fund (the "State's Attorney Fraud Case Settlements Fund") for monies issued pursuant to governing statute from the investigation, prosecution and settlements of insurance fraud and other fraud cases.

BE IT FURTHER RESOLVED, that funds directed to the SAO or to Cook County wil...

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