Legal Question in Business Law in Illinois

Re: Misuse of funds

It may or may not be illegal. If, for example, he was conducting company business at a social gathering with gambling, it might be ok. There may also be a corporate resolution that permits it.

Otherwise, the chances are that it is not in the furtherance of company business and he has embezzled the money that would be a crime.

Re: Misuse of funds

Depends on a lot of things. What type of gambling? Dog fighting? Blackjack on the local riverboat casino? Is he the sole shareholder of an S corporation as well as president? Then essentially he would only be using his own money, and, provided he fulfilled his tax obligations, he can pretty much spend his money any way he pleases. Is it a 501c3? Is it a publicly traded company? The answers to all these questions would affect the answer.