Bankruptcy Fraud Concurrence: Examples and Penalties

The concurrence in bankruptcy fraud is a complex crime that occurs, according to Article 110 of the Penal Code, when multiple people intentionally collaborate to commit acts of bankruptcy fraud. This type of crime not only affects the failed entrepreneur but can also involve third parties, such as administrators or partners, who have knowingly participated in the crime.

What is Meant by Concurrence in Bankruptcy Fraud

The concurrence in bankruptcy fraud occurs when different subjects, with different but complementary roles, act in agreement to mislead creditors or appropriate the assets of a company nearing bankruptcy. The actions can include:

• Diverting funds and company assets;
• Falsifying financial statements and accounting documents;
• Undervaluing the sale of company assets to reduce the company's assets.

The concurrence materializes when each participant is aware and intentionally involved in the criminal plan.

The Legal Consequences

The penalty for concurrence in bankruptcy fraud is severe. Depending on the seriousness of the crime, those found guilty can be sentenced to imprisonment ranging from three to ten years. Additionally, accessory penalties such as disqualification from public office and the inability to hold managerial positions in companies or organizations may be applied.

Some Examples of Concurrence in Bankruptcy Fraud

To better understand this crime, let’s consider some typical scenarios:

• Colluding Administrators: The administrators of a company sell business machinery to a controlled company at a price below market value to hide them from creditors.
• Partners and Consultants: The partners of a company, in collusion with external consultants, prepare false financial statements to hide losses and distribute non-existent profits.
• Document Forgery: The creation of false accounting documents to justify expenses that never occurred, in order to artificially reduce the company's assets.

Contact the Bianucci Law Firm

If you find yourself involved in a similar situation or need clarification on this crime, do not hesitate to contact the Bianucci Law Firm. Our team of experts is ready to provide you with the necessary advice and assistance to effectively address every legal aspect.