Criminal defense for Investment Fraud in Bonn

Legal Basis

§ 264a StGB

Sentencing Range

Imprisonment of up to three years or a fine (Section 264a StGB)

Summary

Incorrect favourable statements or concealment when selling capital investments

Investment Fraud (Section 264a StGB) – Overview

An allegation of investment fraud under Section 264a of the German Criminal Code (StGB) concerns incorrect or concealing statements made to a wider circle of investors – for example in prospectuses, marketing materials or sales presentations for securities or company shares. Unlike general fraud, Section 264a does not require that a financial loss occurred.

What is investment fraud?

Section 264a StGB penalises anyone who, in connection with the sale of securities, subscription rights or shares, makes incorrect favourable statements about material circumstances, or conceals unfavourable facts, in prospectuses or presentations addressed to a wider group of people. The offence is an abstract endangerment offence: the misleading information itself is punishable, regardless of whether an investor actually invests or suffers a loss.

What penalties apply?

The range extends to three years’ imprisonment or a fine. Where the act causes an actual financial loss to investors, a completed fraud under Section 263 StGB, which carries a higher range, regularly comes into question as well. In large cases, accounting and valuation expert reports play a central role.

Defence

The defence examines whether the challenged statements were actually incorrect and material to the investment decision, whether they were addressed to a wider group, and whether intent existed. The distinction between permissible promotional presentation and punishable deception is often the key. Related topics: fraud and breach of trust.

Frequently asked questions

Does investment fraud require a loss? No. Section 264a is an abstract endangerment offence; the misleading information is punishable even without an actual loss.

How does it relate to general fraud? If investors actually suffer a loss, a completed fraud under Section 263 StGB with a higher penalty range may apply in addition.

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: A promoter advertises a corporate bond in a sales prospectus with a “safe” return and conceals that the company is already over-indebted. Merely distributing this prospectus to a multitude of potential investors is punishable under Section 264a StGB – regardless of whether anyone actually subscribes.

A particularity is the reference to a wider group of people: Section 264a covers only statements to an indeterminate multitude of investors, not a one-to-one conversation. Where, by contrast, a specific investor is deceived and suffers a loss, general fraud (Section 263 StGB) is added. An expert report on value often decides the outcome.

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

Summons or accusation of Investment 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 Investment 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.