Criminal sanctions for the fraudulent use of insolvency procedures in Latvia

Abstract

This thesis explores the adequacy of criminal law in Latvia in addressing fraudulent practices in insolvency proceedings. It examines the responsibilities of key regulator actors, such as courts, insolvency administrators, and the Insolvency Control Service, and assesses their effectiveness in detecting and preventing fraud. The study critically analyses Sections 213 – 215 of the Latvian Criminal Law, which criminalise acts such as driving a company into insolvency, submitting a false insolvency applications, and delaying insolvency proceedings. Particular attention is given to judicial and administrative practice, identifying shortcoming in enforcement and prosecutorial decisions. By employing doctrinal research and drawing on international comparative insights, the thesis concludes that while the Latvian legal framework addresses insolvency related fraud, significant deficiencies remain in particular the practical application and legal clarity.