RECOMMENDATIONS TO MITIGATE BANKRUPTCY FRAUD

Malaysian Department of Insolvency (MdI) plays a vital role in detecting and preventing bankruptcy fraud cases. Therefore, the trend of fraud cases has decrease intensely over the years. Based on the cases, among measures taken to counter bankruptcy frauds are:

1 - Strong Government Regulations

The enactment of Bankruptcy Act 1976 and Bankruptcy Rules 1969 provides a comprehensive guidelines to MdI and other enforcement agencies in performing their roles and responsibilities. The act covers the legal issues and offences of bankruptcy. Currently, the Bankruptcy Act 1976 is being revised for further enhancement and any interested party can give comments or feedback on the proposed reform of the act. 

2 - Proper Customer Due Diligence

Financial institutions are highly exposed to the bankruptcy fraud cases. Therefore MdI has developed Insolvency Notification System (INS) to assist financial institutions in tracing a customer who has been declared bankrupt and a wound up company. Thus, financial institutions should use the INS system effectively in performing customer due diligence before any transactions or business contracts being executed.

3 - Effective Awareness Campaign

Many awareness campaigns have been organized to educate people on bankruptcy matters. In fact, MdI also provides consultancy session to the bankrupt persons on the roles and responsibilities in dealing with bankruptcy matters. Once the bankrupt persons have fulfilled their obligations, they can be discharged of bankruptcy status in pursuant to the Bankruptcy Act (Zainol, 2015). 

References:
Zainol Abidin, Norina. Interview by Zamri, Siti Syarina. Bankruptcy Fraud in Malaysia, Putrajaya. 03 June 2015.

http://www.insolvensi.gov.my/about-us/proposed-reform-of-the-bankruptcy-act

The Red Flag of Bankruptcy Fraud

The Red Flag of Bankruptcy Fraud

Red flags are also called as fraud indicators or symptoms, which must be identified by examiners, auditors and employees in order to discern fraud (Zimbelman, Albrecht, Albrecht and Albrecht, 2012). Different type of fraud may have different kind of red flags or symptoms. This also applies to bankruptcy fraud, where each of the schemes involving bankruptcies possess its own common characteristics and red flags. But before we go into details on each of the scheme's red flags, let us be clear on the warning signs of bankruptcy fraud in general.

According to Brown, Netoles, Rasnak and Tighe (1999), there are 22 warning signs of bankruptcy fraud. The signs that we should beware of are as follows:

1. Concealment of assets.
2. Serial bankruptcy cases.
3. Fail to keep usual business records.
4. Missing or incomplete books and records.
5. Unusual depletion of assets shortly before filing for bankruptcy.
6. Debtor's officers, directors or general partners that recently depart.
7. Incomplete information or unanswered questions on debtor's schedules and statement of financial affairs.
8. Regular amendments to statements, schedules of financial affairs and monthly operating reports.
9. Financial statements, tax returns, debtor's schedules and statement of financial position that are inconsistent.
10. Not able to contact principals of debtor at debtor's stated location.
11. Dealings in cash frequently rather than recorded transactions.
12. Depletion of inventory post-petition (sudden) without explanation.
13. Salaries, payments of bonuses or cash withdrawals that are inflated by officers, directors, shareholders or other insiders.
14. Transfer of property to insiders, shareholders and relatives shortly before bankrupt.
15. Payoff loans to officers, directors, shareholders, relatives or other insiders shortly before filing bankruptcy.
16. Transactions with related party such as non-debtor subsidiaries, parent companies or affiliated corporations.
17. Having history of prior litigation or post-petition litigation involving breach of contracts, fraud and misrepresentations.
18. Complex corporate structure.
19. Creditor confusion on corporate structure.
20. Theft, loss and fire subsequently after filing for bankruptcy.
21. Fail to pay sales tax or withholding tax.
22. Establish new similar business near time of bankruptcy filing.

So in general we have known the warning signs of bankruptcy fraud. Lets take a look on what are the common characteristics as well as red flags for Bustouts, Concealment and False Statements, Collusive Involuntary Bankruptcy as well as the Serial Filers or also known as Multiple Filing based on Brown et al. (1999). 

Bustouts Red Flags that we should be alert of:

• Company with short life
• Company with good credit and well established that just taken over by new group trying to hide the change in ownership
• Falsified financial statements
• A made up credit references
• No receivables on schedules where the operation is on cash basis
• A very low inventory schedule
• Full of high volume yet low cost items in warehouse
• Liabilities to assets are disproportionate
• A company which mainly comprises of temporary workers
• Having leased equipment
• A company that have no corporate bank account or their existing account has no funds
• Cash paid up front to rent location
• Similar person involved in previously failed companies
• Unusual banking activities such as bank fraud, cheque kiting, money laundering and structured transaction
• Financial statement and schedule are incomplete or not filed
• Not paying tax
• Same attorney engaged by same set of debtors

Meanwhile for Concealment and False Statements, these are the fraud indicators that we should watch out for:

• Claims of large gambling loss or theft before bankruptcy
• Property insured and personal financial statement in existence are not able to be accounted for before bankruptcy
• Frequent amendments and incomplete schedules when response to creditors
• Changes in financial matters are not able to be explained
• No ownership interest shown by debtors on their residence
• Not filing tax return for that particular year
• Debtors "confuse" of their own personal assets and financial affairs
• Not able to reconcile between unsecured debt and listed assets
• Fail to list prior bankruptcies

As for Collusive Involuntary Bankruptcy, the common characteristics or red flags displayed are:

• Debtor that subject to a 180-day bar on refiling, suddenly has an involuntary filed against him
• Claim asserted in the involuntary are recently acquired by the creditors 
•  A creditors who reappear in suspicious sounding deals
• Same attorney involved in the voluntary and involuntary bankruptcies
• Creditors and debtors that known one another very well or creditors who are “former” long-term business associates of the debtor’s insider
• Insider that has filed for voluntary bankruptcy cases for several corporate or partnerships in a short period of time, and the cases filed are full of doubt

For the Serial or Multiple Filing scheme, the symptoms that we are able to identify are as follows:

• Number of cases has been filed by a debtor in a short period of time
• Prior bankruptcy cases not being disclosed by debtors
• Using of different counsel to file each case

Whether we are an employees, examiners or auditors, it is important for us to take note on the indicators of bankruptcy fraud as mentioned above. Despite that we hardly heard of this kind of fraud occurs in Malaysia, and perhaps not rampant, still we do need to be alert. Detecting the warning signs will enable us to mitigate the case earlier.     

  

References:

Brown, J.B., Netoles, B., Rasnak, S.T., Tighe, M., (1999) Identifying Bankruptcy Fraud.

Zimbelman, M. F., Albrecht, C. C., Albrecht, W. S., Albrecht, C. O., (2012) Forensic Accounting. Canada: Cengage Learning.

A Visit to MdI – Part VI

A Visit to MdI – Part II

Assalamualaikum and Hi bloggers. As what we have promised to you yesterday, we are going to share with you what are the common red flags of bankruptcy fraud in Malaysia.

According to Puan Norina (Director of Investigation and Enforcement Section, MdI), from 2012 to April 2014 only 29 investigation papers regarding bankruptcy fraud were open. The small number of cases investigated was due to the reason of being discharge of bankrupt by order of court under  Section 33 Bankruptcy Act 1967, insufficient of evidence collected and the deceased of bankrupt. Besides these reasons, less number of investigation paper opened for bankruptcy fraud was due to the policy of this department which emphasis more on educating the bankrupt as well as try to get them out of bankruptcy. 

However, of all the cases that they handled, they able to noticed the most common red flag of bankruptcy fraud was transfer of assets. The second most common was getting loan once a perpetrator had declared bankrupt. Yet, this latter red flags are able to be mitigated due to the implementation of Insolvency Notification System in 26 financial institutions and banks across Malaysia. The system which was on real time basis has enabled financial institutions and banks to pull data of bankrupts from MdI. This will prevent them from providing loan to a bankrupt.

In regards to recommendations in order to alleviate bankruptcy fraud, Puan Norina had mentioned that MdI has done a lot of awareness campaign and outreach program. This includes reaching out to the bankrupt’s, meet them personally and educate them pertaining to the roles and responsibility of bankrupt. Their approach towards the bankrupts are more towards assisting them to not being bound with debt continuously. This since the settlement of debt can be made in installment based on the bankrupt’s ability in repayment. 

So that was all that Puan Norina had shared with us on that day. At the end of the visit, we had presented a gift, as a form of our appreciation towards their cooperation and willingness in sharing knowledge and experience.

Thank you very much Puan Norina, Puan Norhafiza and Puan Norhayati. It was a fruitful session indeed!

A Visit to MDI Part V: Evidence to Collect

To ensure the case can be brought to court, sufficient evidence need to be gathered and collected by Investigation Officer. According to Puan Norina, the most important evidence to be collected is documentary evidence. Documentary evidence need to prove ownership of assets such as land title, house title, car registration card, directorship or ownership of a company and others.

Secondly, bankruptcy administration process (proses pentadbiran kebankrapan) is also important. In this part, MDI need to ensure all the requirements process have been complied with. For example, the bankrupt need to be informed on his/her status, especially in the third party filing case. After that, recording statement from witness is also important to support and strengthen the case. All relevant witness need to be identified by the Investigation Officer.

Finally, chain of evidence is crucial to ensure all evidence collected can be tendered at court. Chain of evidence are as follows:
1. Obtain search warrant from court;
2. Go to suspect's house or property, search and seize evidence;
3. Get the house or property occupant's to sign the seizure form;

4. Lodge a police report;

5. Send evidence to store for safe keeping.

VISIT TO MDI PART IV: INVESTIGATION PROCESS FOR BANKRUPTCY FRAUD CASE

INVESTIGATION PROCESS

In Malaysia, an investigation of a bankruptcy fraud is performed by Investigation and Enforcement Unit (UPP) of Malaysian Department of Insolvency (MdI). Director General of Insolvency will appoint a bankruptcy fraud investigator to conduct an investigation process. Based on Abidin (2015), the process of investigation is similar to investigation process done by other enforcement agencies such as the Royal Malaysian Police and the Royal Customs Department. It involves the following steps:

(1)  Receive a complaint – UPP will receive complaints on any fraudulent activities from various channels either by email, written documents (letter) or phone calls. Most of the complainants are public (individual or entity) and internal personnel of MdI such as Insolvency Officer.  

(2)  Open investigation file – UPP will appoint an investigation officer to handle the bankruptcy fraud case. The purpose of opening a file case is to commence the investigation process.

(3)  Request for information – Relevant information and evidence are obtained from public and private agencies such as SSM, JPJ, BNM, financial institutions and others. Further, cross examination of documents is needed to ascertain the facts of the case.

(4)  Identify witness – A bankruptcy fraud investigator will identify all possible witnesses that closely related to the case.

(5)  Interview and record statement – Making several inquiries to the suspect and possible witnesses for obtaining information in respect of the bankruptcy fraud case.  

(6)  Documenting evidence – Oral evidence and documents must be kept appropriately to maintain its credibility.

 The investigation process must be performed correctly thus making the evidence admissible in court. The investigation officers are crucial to uncover hidden facts, to obtain relevant evidence and to challenge the proof of prosecution’s case in the court. Therefore, they must be knowledgeable of the law and able to provide facts and evidence that can be linked to the application of the law. They are also trained to handle the bankruptcy fraud cases in the investigation process and in the courtroom.

 

Reference:

Zainol Abidin, Norina. Interview by Zamri, Siti Syarina. Bankruptcy Fraud in Malaysia, Putrajaya. 03 June 2015.

A Visit to MDI Part III: Section Used by MdI to Investigate and Charge Bankruptcy Fraud

Power to Investigate

Puan Norina explained that Section 84A of the Bankruptcy Act, gives the Director General of Insolvency (DGI) the power to investigate same as the powers of Commissioner of Police.

"84A. (1) In addition to, and without prejudice to the powers, duties and functions conferred under this Act, the Director General of Insolvency shall, for the purposes of this Act and sections 421, 422, 423 and 424 of the Penal Code, have all the powers of a Commissioner of Police under the Police Act 1967 [Act 344] and the Criminal Procedure Code [Act 593]."

The power to investigate was given to the DGI personally, however the DGI, can appoint an Investigation Officer (IO) for the purpose of investigation. This is in agreement with S84A(3) as follows:

"S84A. (3) The Director General of Insolvency may appoint fit and proper persons to be investigation officers who shall, for the purposes of this Act and sections 421, 422, 423 and 424 of the Penal Code, have all the powers of a police officer under the Police Act 1967 and the Criminal Procedure Code."

However, the DGI did not has any power to investigate bankruptcy case under Companies Act. Section 371 of the Companies Act, provide power of proceeding for any offence under the Act may be taken by the Registrar or with the written consent of the Minister.


Section used to Charge Bankruptcy Fraudster
After the interview session, Puan Norina gave us a copy of offence under Bankruptcy Act. The offence and relevant section are as follow:

LAMPIRAN A

KESALAHAN-KESALAHAN DAN HUKUMAN YANG DIPERUNTUKAN DI BAWAH AKTA KEBANKRAPAN 1967

KESALAHAN FRAUD

A.     Penghutang Fraud

	SEKSYEN	KETERANGAN KESALAHAN	HUKUMAN
1.	109 (1) (a)	Gagal mendedahkan  kesemua harta bendanya atau bagaimana ianya dilupuskan kepada Ketua Pengarah Insolvensi.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
2.	109 (1) (b)	Gagal menyerahkan kesemua hartanya kepada Ketua Pengarah Insolvensi	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
3.	109 (1) (c)	Gagal menyerahkan kesemua buku-buku dan dokumen yang berkaitan dengan urusan harta benda dan hal ehwalnya kepada Ketua Pengarah Insolvensi.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
4.	109 (1) (d)	Menyembunyikan mana-mana bahagian harta atau hutang selepas atau dalam tempoh 12 bulan sebelum penyerahan petisyen kebankrapan.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
5.	109 (1) (e)	Secara fraud mengalihkan mana-mana bahagian hartanya selepas atau dalam tempoh 12 bulan sebelum penyerahan petisyen kebankrapan.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
6.	109 (1) (f)	Membuat peninggalan material dalam mana-mana pernyataan berhubung dengan hal ehwalnya.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
7.	109 (1) (g)	Gagal memaklumkan kepada Ketua Pengarah Insolvensi berkenaan bukti hutang palsu dalam tempoh satu bulan.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
8.	109 (1) (h)	Menghalang dikemukakan mana-mana dokumen, yang mempengaruhi atau berkaitan dengan harta atau hal ehwalnya selepas penyampaian petisyen kebankrapan.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
9.	109 (1) (i)	Menyembunyikan , membinasakan , mencacatkan atau memalsukan atau merahsiakan penyembunyian, pembinasaan, pencacatan atau pemalsuan mana-mana dokumen yang menyentuh atau berhubung dengan harta atau hal ehwalnya dalam tempoh 12 bulan selepas penyerahannya.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
10.	109 (1) (j)	Memasukkan maklumat palsu dalam dokumen yang berkaitan dengan harta atau hal ehwalnya, dalam tempoh 12 bulan selepas atau selepas penyerahan petisyen kebankrapan.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
11.	109 (1) (k)	Melepaskan milik secara fraud, menukar atau membuat peninggalan dalam, atau merahsiakan pelepasan milik secara fraud, pertukaran atau pembuatan apa-apa peninggalan dalam, mana-mana dokumen yang menyentuh atau berhubung dengan harta atau hal ehwalnya dalam tempoh 12 bulan sebelum atau selepas penyerahan petisyen kebankrapan.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
12.	109 (1) (l)	Mencuba menjelaskan mana-mana bahagian hartanya dengan kerugian atau perbelanjaan rekaan di dalam atau selepas mana-mana mesyuarat pemiutang-pemiutangnya 12 bulan sebelum penyampaian petisyen kebankrapan.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
13.	109 (1) (m) (i)	Mendapatkan hutang RM1,000.00 atau lebih tanpa memaklumkan beliau adalah seorang bankrap yang belum dilepaskan	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
14.	109 (1) (m) (ii)	Melibatkan diri dalam perniagaan atau memasuki kontrak untuk memajukan perniagaan tanpa memberitahu bahawa beliau adalah seorang bankrap yang belum dilepaskan.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
15.	109 (1) (n)	Memperolehi mana-mana harta atau kredit dengan apa-apa nyataan palsu atau fraud dan belum lagi membayar untuk harta itu dalam tempoh 12 bulan sebelum atau selepas perintah petisyen kebankrapan.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
16.	109 (1) (o)	Memperolehi harta secara kredit di bawah dakwaan palsu atas menjalankan perniagaan dalam tempoh 12 bulan sebelum atau selepas perintah petisyen kebankrapan.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
17.	109 (1) (p)	Mengadai,menyandarkan atau melupuskan atau menghantar ke luar Malaysia apa-apa harta yang ia perolehi atau kredit dalam tempoh 12 bulan sebelum atau selepas perintah petisyen kebankrapan.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
18.	109 (1) (q)	Membuat pernyataan palsu atau fraud lain bagi maksud untuk memperolehi keizinan pemiutang-pemiutang berhubung dengan Hal Ehwal atau kebankrapannya.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
19.	109 (1) (r) (i)	Secara material meningkatkan keberhutangan melalui perjudian atau spekulasi dalam tempoh 2 tahun sebelum petisyen difailkan.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
20.	109 (1) (r) (ii)	Kehilangan mana-mana bahagian hartanya dengan berjudi atau spekulasi antara tarikh penyerahan petisyen dan tarikh Perintah Penerimaan.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
21.	109 (1) (r) (iii)	Gagal memberikan penjelasan yang mencukupi berhubung kehilangan estetnya kepada Ketua Pengarah Insolvensi atau Mahkamah.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
22.	109(3)	Menggadai, menyandarkan atau melupuskan mana-mana harta, mengambil gadai  atau sandarannya atau selainnya menerima harta yang diketahui telah digadai, disandar atau dilupuskan dalam keadaan tertentu.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
23.	110 (1)	Gagal untuk menyimpan buku-buku perakaunan perniagaannya untuk tempoh 2 tahun sebelum petisyen kebankrapan difailkan.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
24.	111 (a)	Mengambil hutang yang boleh dibuktikan dalam kebankrapannya dalam tempoh 12 bulan sebelum petisyen difailkan tanpa jangkaan munasabah boleh membayarnya.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
25.	111 (b)	Mengambil hutang perniagaan atau menanggung keterhutangannya dalam tempoh 12 bulan sebelum tarikh petisyen kebankrapan apabila beliau berada dalam keadaan tidak mampu membayarnya atau tidak mempunyai jangkaan yang munasabah mampu membayarnya.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
26.	112	Meninggalkan Malaysia dengan membawa bersamanya harta bernilai RM50.00 atau lebih selepas tarikh penyerahan petisyen kebankrapan atau penyampaian saman penghutang ke atasnya atau dalam tempoh 4 bulan sebelum penyerahan atau penyampaian tersebut.	Penjara sehingga 2 tahun, atau denda atau kedua-duanya sekali.
27.	113 (1)	Meninggalkan Malaysia dengan sengaja untuk mengelak dari apa-apa prosiding kebankrapan.	Penjara sehingga satu tahun atau denda tidak melebihi RM1000.00 atau kedua-duanya sekali.
28.	114 (1) (a)	Mengambil kredit di bawah dakwaan palsu atau secara fraud	Penjara sehingga satu tahun atau denda atau kedua-duanya sekali.
29.	114 (1) (b)	Melupuskan hartabendanya secara pemberian hadiah, pindah milik atau mencagarkannya dengan niat memfraud pemiutang.	Penjara sehingga satu tahun atau denda atau kedua-duanya sekali.
30.	114 (1) (c)	Menyembunyikan atau mengalihkan harta bendanya selepas atau dalam tempoh 2 bulan sebelum penghakiman diperolehi terhadapnya.	Penjara sehingga satu tahun atau denda atau kedua-duanya sekali.

B.     Pemiutang Fraud

	SEKSYEN	KETERANGAN KESALAHAN	HUKUMAN
31.	115 (1)	Pemiutang atau orang yang menuntut sebagai seorang pemiutang dalam apa-apa kebankrapan, setuju selesai atau perkiraan dengan pemiutang-pemiutang yang membuat apa-apa tuntutan, bukti, akaun atau penyata akaun yang tidak betul dalam apa-apa butir yang material melainkan beliau memuaskan Mahkamah bahawa beliau tidak mempunyai niat untuk memfraud.	Penjara sehingga satu tahun atau denda atau kedua-duanya sekali.
32.	115 (2)	Pemiutang yang memperolehi atau menerima apa-apa wang atau harta, atau cagaran dari mana-mana orang sebagai suatu dorongan tidak membuat bangkangan, atau untuk bersetuju kepada pelepasan seorang bankrap.	Denda kepada 3 kali ganda amaun atau nilai wang, harta atau cagaran.

C.     Subahat kepada bankrupt/ penghutang

	SEKSYEN	KETERANGAN KESALAHAN	HUKUMAN
33.	115 (3)	Seseorang yang mengetahui suatu Perintah Penerimaan telah dibuat terhadap seorang penghutang, memindahkan, menyembunyikan, menerima atau selainnya berurusan dengan atau melupuskan mana-mana bahagian harta penghutang tersebut, dengan niat untuk mengecewakan Perintah.	Penjara sehingga 3 tahun atau denda sehingga 2 kali ganda nilai harta atau kedua-duanya sekali.

PENALTI DI BAWAH AKTA KEBANKRAPAN 1967

	SEKSYEN	KETERANGAN PENALTI	HUKUMAN
1.	21 (1)	Mana-mana orang yang menerima apa-apa rahsia atau keutamaan pakat-sulit, ganjaran, jaminan, pembayaran atau balasan lain kerana bersetuju menandatangani suratikatan perkiraan yang mana Seksyen 20 dipakai, dalam tempoh 2 bulan sebelum atau pada mana-mana tempoh menandatangani yang sama.	Denda tidak melebihi 5 kali ganda amaun atau nilai gratuity yang diterima atau yang telah dijanjikan.
2.	35A (a)	Bankrap yang telah dilepaskan gagal memberi kerjasama kepada KPI selepas pelepasannya dalam menghasilkan dan membahagikan apa-apa hartanya  yang terletak hak kepada KPI	Denda tidak melebihi RM 5,000.00 atau penjara tidak melebihi 6 bulan atau kedua-duanya sekali.

KESALAHAN DI BAWAH KANUN KESEKSAAN

	SEKSYEN	KETERANGAN KESALAHAN	HUKUMAN
1.	421	Mengalih atau menyembunyikan harta dengan curang atau tipu bagi mengelakkan pembahagian antara pemiutang-pemiutangnya	Penjara sehingga 5 tahun atau denda atau kedua-duanya sekali.
2.	422	Dengan curang atau tipu mengelak apa-apa piutang atau tuntutan yang ia atau orang lain berhak daripada dapat digunakan untuk membayar hutang.	Penjara sehingga 5 tahun atau denda atau kedua-duanya sekali.
3.	423	Dengan curang atau tipu menyempurnakan surat ikatan memindah milik yang mempunyai kenyataan palsu tentang balasan.	Penjara sehingga 5 tahun atau denda atau kedua-duanya sekali.
4.	424	Dengan curang atau tipu menyembunyikan atau mengalihkan harta	Penjara sehingga 5 tahun atau denda atau kedua-duanya sekali.

References:
Bankruptcy Act 1967