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Illinois is a "two party consent" state, meaning it is actually a crime to record a conversation unless all parties to the conversation consent. 720 Ill. Comp. Stat. 5/14-1, -2. However, recording laws don't normally apply in public places, where there is no expectation of privacy (e..g, if you were outside talking on the street where anyone could walk by and hear you).
Thus, if this was in fact a private conservation that was recorded without consent, you could report it to the police. Additionally, you may have a civil claim for invasion of privacy based upon the intrusion into your solitude or seclusion. It wouldn't be defamation unless false statements were made about you to a third party. If everything said in the conversation was true, then there is no defamation.
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