Fraudulent Bankruptcy by Distraction: Discover the Penalty and What the Law Says

Fraudulent bankruptcy by distraction represents one of the most serious offenses in the context of corporate bankruptcy. It is essential to understand the legal implications and the penalties provided for those who commit this crime. In this article, we will examine in detail what Italian law stipulates and what the consequences are for those who commit fraudulent bankruptcy by distraction.

What is Fraudulent Bankruptcy by Distraction?

Fraudulent bankruptcy by distraction occurs when an entrepreneur, with intent, removes assets or financial resources from the company's asset base, with the aim of harming creditors. This type of bankruptcy, classified as fraudulent, always implies intentional and deceptive behavior aimed at concealing or dissipating the company's assets.

The Regulatory Framework

In Italy, fraudulent bankruptcy by distraction is governed by the Criminal Code, in particular by Article 216, which defines the various types of bankruptcy and the related penalties. The law provides severe penalties for those who commit this crime, recognizing the serious economic and social impact that results.

Article 216 of the Criminal Code: "The entrepreneur declared bankrupt who has removed, distracted or dissipated, in whole or in part, the assets of the company is punished with imprisonment from three to ten years."

The Penalties Involved

The penalties for fraudulent bankruptcy by distraction vary depending on the severity of the crime and any mitigating or aggravating circumstances. In general, imprisonment can range from a minimum of three years to a maximum of ten years. However, the penalty may be increased if the crime has caused particularly serious harm to creditors or if the value of the distracted assets is considerable.

• Imprisonment: From 3 to 10 years, depending on the severity of the crime.
• Disqualification from public offices: Possible temporary or permanent disqualification.
• Confiscation of assets: The removed assets may be confiscated to reimburse creditors.

Constitutive Elements of the Crime

For the crime of fraudulent bankruptcy by distraction to be established, certain constitutive elements must be present:

• Intent: The intention to remove assets with the aim of harming creditors.
• Distraction of assets: Removal or concealment of assets that should have been allocated to satisfy creditors.
• Harm to creditors: Resulting impossibility for creditors to recover what is owed to them.

How to Defend Against an Accusation of Fraudulent Bankruptcy

If you are facing an accusation of fraudulent bankruptcy by distraction, it is essential to seek competent legal assistance. The Bianucci Law Firm can provide you with expert support to navigate the complexities of the case and effectively defend your rights.

We invite you to contact our firm for personalized advice and to discover how we can help you manage allegations of fraudulent bankruptcy. Our team of experts is at your disposal to provide you with all the necessary support.