Lawyer in subsidy fraud for Stade

Subsidies are state financial subsidies for individuals or companies. They serve to promote economic development and are not tied to any direct return, but are usually subject to conditions. For this reason, they are subject to strict regulatory oversight.

Subsidy fraud refers to unlawfully obtained financial benefits in a business context and is Part of commercial criminal lawAn investigation into subsidy fraud can be initiated even if false statements are made or requirements are not met. A conviction can result not only in heavy fines or imprisonment, but also in criminal tax law or professional disciplinary action, as well as in professional disciplinary proceedings. When a company in Stade is involved, there is always a risk of damage to a company's reputation. Of particular relevance here is the fact that managing directors and entrepreneurs – especially depending on their legal form – can also be held personally liable. In cases of high damages, this can threaten a company's existence.

Subsidy fraud

The criminal offense of subsidy fraud is regulated in Section 264 of the Criminal Code (StGB). This provision serves to protect the public interest in ensuring that state aid is provided effectively and lawfully. 

Subsidy fraud must first be based on a subsidy The law defines such a benefit in Section 264 Paragraph 8 Sentence 1 of the Criminal Code as a benefit from public funds under federal or state law or European Union law to businesses or companies, which is granted at least in part without any market-based consideration, i.e. if this is objectively of lesser value, and is intended to promote the economy. 

The fulfillment of the offense requires the unlawful acquisition of funding. This includes the following acts:

• The incorrect or incomplete disclosure of facts relevant to the subsidy to the subsidy provider which is advantageous to him or another person (Section 264 (1) No. 1 of the German Criminal Code), for example if false company data regarding employees or turnover are provided.
• The improper use of the received item or the monetary payment contrary to a prescribed restriction on use (Section 264 (1) No. 2 of the German Criminal Code), for example, if the funds are misused for private purposes. In these cases, the Attempt punishable.
• Concealing facts relevant to the subsidy from the subsidy provider (Section 264 (1) No. 3 of the German Criminal Code).
• The use of a subsidy certificate obtained through incorrect or incomplete information (Section 264 (1) No. 4 of the German Criminal Code).

Subsidy-relevant According to Section 264 Paragraph 9 of the German Criminal Code (StGB), these are facts which are designated as such by or on the basis of a law or on which it depends whether a subsidy is granted, continued to be granted or reclaimed. 

The law also defines a particularly serious case of subsidy fraud, which ultimately affects the sentence. This includes cases in which an unjustified subsidy of a large size is obtained out of gross self-interest or by using falsified documents, or in which a position as a (European) official is exploited. In addition, less serious case occurs when the crime is committed as a member of a gang on a commercial basis, i.e. for continued commission.

threat of punishment

Depending on the severity of the offense, the law a fine or imprisonment of up to 5 years In particularly serious cases, a fine is no longer possible; instead, the applicable penalty range provides for a prison sentence of between six months and ten years. Furthermore, the court can order measures such as repayment, confiscation of misused funds, or disqualification from holding office. Furthermore, a conviction for subsidy fraud often also has tax consequences.

The statute of limitations for subsidy fraud is five years from the date the offense was committed, i.e., from the date the subsidy was paid out or the last installment was paid out. In the case of gang-related fraud, the statute of limitations is only ten years.

In contrast to tax evasion, Voluntary disclosure does not lead to impunity in subsidy fraud, but can she itself nonetheless have a mitigating effect on the sentenceFurthermore, Section 264, Paragraph 6 of the German Criminal Code stipulates that no punishment will be imposed if the person voluntarily prevents the granting of a subsidy or makes a voluntary and serious effort to prevent it. It is important to note that this voluntary action is not merely feigned because the circumstances of the offense would otherwise have been discovered anyway. 

For Managing directors and entrepreneurs A conviction often results in personal liability for the resulting damages. Furthermore, a final conviction can result in a ban on management functions of up to five years as a so-called secondary criminal consequence. This then (temporarily) prohibits both the management of a limited liability company (GmbH) and the board of directors of a stock corporation (AG).

Investigative measures and house search in Stade

In the context of investigations, police summonses, house searches, and asset seizures can also occur in Stade. It's a good idea to contact a lawyer early on to avoid legal errors and gain access to the investigation file. 

If your home is searched, you should always keep the following in mind: In the event of such a house search, you should Quiet preserve and cooperate, as resistance can be considered an aggravating factor in later court proceedings. In any case, it is advisable to Right to remain silent as an accused and not to provide any information. It may be useful to Lawyer for Stade and have the officers wait with the search until the lawyer arrives. A lawyer experienced in employment law should be consulted. However, in case of doubt, they should at least Witnesses consult. 

Let the search warrant and provide a copy, as this will specify which rooms and objects are covered by the search. You can submit these items voluntarily, but you should object to their seizure. If necessary, they will be confiscated. You should ensure that this is recorded in detail and obtain a copy. Accompany the officers during the search and check whether other items are being sought than those listed in the warrant. Be sure to record in writing any actions that deviate from the warrant and indicate errors or violations of the law.

Corona subsidies

Prosecution for subsidy fraud has become particularly relevant due to the crisis aid provided during the coronavirus pandemic starting in 2020. Companies in Stade were also affected by these measures. They were primarily intended to mitigate the economic and financial threats to companies' existence caused by various lockdowns. The November and December aid measures, which were granted by the Investment and Development Bank based on decisions by the federal and state governments, were particularly significant. These subsidies were accompanied by numerous cases of subsidy fraud. The reason for this is that the funds were provided relatively quickly and unbureaucratically, and the specific conditions for such funding were not always precisely defined. 

One prerequisite for receiving coronavirus subsidies was the existence of economic difficulties as a result of the coronavirus pandemic. In this context, the authorities often required applicants to assert a threat to their existence. Not every instance of a drop in revenue as a result of the coronavirus pandemic entitles them to receive subsidies. In this case, not only the deliberate but also the careless provision of false facts constitutes an offense. This is conceivable in the case of an exaggerated representation of revenue losses or the concealment of other sources of income. The misuse of funds received as subsidies for private purposes is also a widespread phenomenon in the case of coronavirus emergency aid.

Current legal situation regarding subsidy fraud

Prosecution for subsidy fraud has become particularly relevant due to the crisis aid provided during the coronavirus pandemic starting in 2020. This aid was primarily intended to mitigate the economic and financial threats to companies' existence caused by various lockdowns. The November and December aid programs, which were granted by the Investment and Development Bank based on decisions by the federal and state governments, were particularly significant. These subsidies were accompanied by numerous cases of subsidy fraud. The reason for this is that the funds were provided relatively quickly and unbureaucratically, and the specific conditions for such aid were not always precisely defined. 

One prerequisite for receiving coronavirus subsidies was the existence of economic difficulties as a result of the coronavirus pandemic. In this context, the authorities often required applicants to assert a threat to their existence. Not every instance of a drop in revenue as a result of the coronavirus pandemic entitles them to receive subsidies. In this case, not only the deliberate but also the careless provision of false facts constitutes an offense. This is conceivable in the case of an exaggerated representation of revenue losses or the concealment of other sources of income. The misuse of funds received as subsidies for private purposes is also a widespread phenomenon in the case of coronavirus emergency aid.

Current legal situation regarding subsidy fraud

There is a lot of current case law in this area, not only because, but also because, especially in the context of subsidies after the Corona period, criminal proceedings have been repeatedly initiated on allegations of subsidy fraud.

Criminal defense: Specialized lawyers for Stade

If the authorities become aware of a violation, they may not only demand reimbursement but also initiate criminal proceedings. If you are accused of subsidy fraud in Stade, or if you have been subjected to a search, asset seizure, or even an arrest, we are happy to assist you as experienced criminal defense attorneys!