(1) The bankrupt commits an offence if he or she has—
(a) in the 2 years before the petition, materially contributed to or increased the extent of his or her insolvency by gambling or by rash and hazardous speculations; or
(b) in the initial period, lost part of his or her property by gambling or by rash and hazardous speculations.
(2) In determining for the purposes of this section whether any speculations were rash and hazardous, the financial position of the bankrupt at the time when he or she entered into them shall be taken into consideration.