Article 727 — Fraudulent Bankruptcy.

(1) A debtor adjudged bankrupt who has intentionally disposed of his assets to the prejudice of his creditors, a) either materially, whether by assigning or by destroying, damaging, depreciating or rendering useless certain property forming a part of such assets; or b) fictitiously, whether by removing or concealing property, by relying on or recognizing non-existent debts or claims or by inciting a third party to make fictitious claims, or in any other manner pretending that his estate is less than it is in fact, in particular by means of incorrect accounting, falsified correspondence or a false balance sheet, shall be punishable with simple imprisonment for not less than six months. (2) In serious cases where the damage was of particular gravity or was imposed upon the Defence Forces, or a public undertaking or service, the punishment shall be rigorous imprisonment not exceeding eight years. (3) A third party who has committed such acts to the prejudice of the creditors shall be punishable with simple imprisonment not exceeding three years. (4) Where the acts of the criminal amount to fraud, the relevant provisions shall apply concurrently.