Criminal defense for Investment Fraud in Bonn

In brief: Incorrect favourable statements or concealment when selling capital investments. The sentencing range is Imprisonment of up to three years or a fine (Section 264a StGB) (§ 264a StGB). What matters is the evidence – we assess it after obtaining the case file.

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

Two things matter immediately: say nothing to the police about the allegation – you are never obliged to – and have your defense obtain the investigation file first. In detail: your rights as an accused person, responding to a police summons.

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 assess the evidence, look for procedural errors and negotiate with the prosecution about a discontinuation.

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.