The crime of bankruptcy by negligence due to fictitious speculation

Abstract

This study addresses an important topic in the field of criminal law, namely criminal liability for the crime of bankruptcy by negligence, particularly when it results from fictitious speculations. Such acts undermine trust in financial transactions and harm the interests of creditors as well as the financial community as a whole. This crime is considered an economic offense that requires specific conditions in the offender, the most important of which is being a merchant, and that it is proven he has engaged in unlawful conduct leading to bankruptcy, such as excessive spending or engaging in speculations not based on a sound economic foundation.

      The research defines the legal elements of this crime, especially the material element represented by the criminal act (fictitious speculation) and the moral element represented by criminal intent. It also reviews the penalties prescribed for this crime under Iraqi legislation and compares them with those stipulated in comparative laws such as Egyptian, French, and Algerian law. In addition, the study examines the legal procedures taken against the bankrupt merchant, whether at the stage of investigation, trial, or afterward, highlighting the precautionary measures and supplementary penalties that may be imposed. The study concludes that regulating this crime and addressing it through criminal sanctions constitutes an effective means of achieving both general and specific deterrence, protecting financial stability, and preventing violations that may lead to the collapse of confidence in the economic market. The research further discusses the position of Iraqi legislation on this crime, given its developments in addressing such offenses.

       The study does not limit itself to the elements and penalties alone, but also addresses procedural rules such as complaints, inquiry, preliminary investigation, judicial procedures, and means of appeal. It explores the roles of the public prosecution, victims, determination of the competent court, as well as procedures related to retrial and correction of cassation decisions when necessary. It also examines precautionary measures and supplementary penalties, such as prohibiting the practice of commercial activity or imposing financial supervision over the bankrupt merchant, as these provide safeguards to prevent the recurrence of the crime in the future