Criminal defense for Credit Fraud in Bonn

Legal Basis

§ 265b StGB

Sentencing Range

Imprisonment of up to three years or a fine (Section 265b StGB)

Summary

Incorrect statements to a lender for a business or company loan

Credit Fraud (Section 265b StGB) – Overview

An allegation of credit fraud under Section 265b of the German Criminal Code (StGB) concerns incorrect statements to a lender in connection with a loan for a business or company. Like investment fraud, Section 265b is an endangerment offence and does not require a financial loss.

What is credit fraud?

Section 265b StGB penalises anyone who applies for a loan for a business or company and submits incorrect or incomplete documents about its economic circumstances, or makes incorrect written statements – for example on balance sheets, turnover or collateral. Unlike fraud, it does not matter whether the loan was granted or a loss caused; the incorrect statement itself is punishable.

What penalties apply?

The range extends to three years’ imprisonment or a fine. Where the act actually leads to a loan being granted and a loss, a completed fraud (Section 263 StGB) is also in play. A particular feature is active repentance: anyone who voluntarily prevents the lender from paying out on the basis of the act may remain unpunished.

Defence

The defence examines whether the statements were incorrect and relevant to the loan, whether it concerned a business or company loan, and whether intent existed. The possibility of active repentance should also be examined early. Related topics: fraud and forgery of documents.

Frequently asked questions

Does credit fraud require that the loan was granted? No. The incorrect statement itself is punishable, regardless of whether the loan was granted or a loss occurred.

Can I avoid punishment? Possibly through active repentance – by voluntarily preventing the lender from paying out on the basis of the act.

What sentence does it carry? Up to three years’ imprisonment or a fine.

Should I make a statement? Not without legal advice; have the file inspected first and respond only through your lawyer.

Practical example and particularities

Example: An entrepreneur submits a doctored balance sheet with inflated turnover to the bank for a working-capital loan. Merely submitting the incorrect documents satisfies Section 265b StGB – even if the bank ultimately refuses the loan and no loss arises.

A particularity is active repentance: if the perpetrator voluntarily prevents the bank from paying out on the basis of the act – for example by correcting the information in time – they remain unpunished. The offence is also limited to business and company loans; for private consumer loans only general fraud comes into question.

This information is general in nature and does not replace advice in an individual case.

Summons or accusation of Credit Fraud? What matters now

Make no statement to the police at first

As an accused person you are never obliged to comment on the allegation. Anything said to the police can be used against you. Provide statements only through your defense attorney and only after reviewing the case file.

File inspection comes first

A sound defense against the allegation of Credit Fraud requires knowledge of the investigation file. Only once the available evidence is clear can we decide whether a statement is advisable or whether remaining silent is the better strategy.

Possible discontinuation of proceedings

Not every case ends in a trial. Depending on the evidence and any prior record, the proceedings may be discontinued for lack of sufficient suspicion (§ 170 II StPO), for triviality (§ 153 StPO) or subject to conditions (§ 153a StPO). Often a penalty order without a public trial can be achieved.

Victim-offender mediation and restitution

In many cases, victim-offender mediation or making good the damage (§ 46a StGB) can significantly reduce the sentence or enable a discontinuation. Whether this is advisable in your case is something we assess based on the file.

What we do after reviewing the file

We examine the evidence for reliability and admissibility, look for procedural errors, develop the defense strategy, seek a dismissal of the proceedings through discussions with the public prosecutor’s office and represent you, if necessary, at trial before the Bonn Local Court or Bonn Regional Court.

Available 24/7: +49 228 504 463 36

This information does not replace a review of the individual case. In criminal proceedings, the defense strategy depends substantially on the case file, the specific allegation and the evidence.