295Incurring losses by speculation: Failing to account for losses

295 Incurring losses by speculation: Failing to account for losses

(1)  An insolvent who, having been engaged in any trade or business, and having outstanding at the date of the commencement of his insolvency any debts contracted in the course and for the purposes of such trade or business –

(a) has, within 2 years prior to the presentation of the bankruptcy petition, materially contributed to or increased the extent of his insolvency by gambling or by rash and hazardous speculations, and such gambling or speculations are unconnected with his trade or business;

(b) has, between the date of the presentation of the petition and the date of his becoming an insolvent, lost any part of his estate by such gambling or rash and hazardous speculations as aforesaid; or

(c) on being required by the trustee at any time, or by the court, in the course of his public examination, to account for the loss of any substantial part of his estate incurred within a period of a year next preceding the date of his becoming an insolvent, he fails to give a satisfactory explanation of the manner in which such loss was incurred –

shall be guilty of a crime.

Charge:  

(a) Being an insolvent incurring losses by speculation.

(b) Being an insolvent incurring losses by speculation.

(c) Being an insolvent, failing to account for losses.

(2)  In determining for the purposes of this section whether any speculations were rash and hazardous, the financial position of the accused person at the time when he entered into the speculations shall be taken into consideration.

(3)  A prosecution shall not be instituted against any person under this section except by order of the Supreme Court, nor where the insolvency occurs within 2 years from 1st April 1924.