Criminal defense for Subsidy Fraud in Bonn

Legal Basis

§ 264 StGB

Sentencing Range

Imprisonment of up to five years or a fine; up to ten years in particularly serious cases

Summary

Inciting hatred or calling for violence against segments of the population or individuals based on group membership

Subsidy Fraud (Section 264 StGB) – Overview

An accusation of subsidy fraud under Section 264 StGB affects anyone who has applied for public funding – from Corona emergency aid to investment and business grants – and regularly leads to repayment demands alongside the criminal proceedings. Crucially, unlike ordinary fraud, subsidy fraud is punishable even where the applicant acted only recklessly. Attorney Philip Bafteh defends accused persons and companies in Bonn, Cologne and nationwide – after full access to the case file.

What constitutes subsidy fraud?

Section 264 StGB protects public funds against improper claims. The offence is committed by anyone who, in relation to a subsidy, makes incorrect or incomplete statements about facts relevant to the grant that are advantageous to themselves or another; who uses an object or money whose use is restricted by law or by the grantor contrary to that restriction; or who leaves the grantor in the dark about facts relevant to the grant. A „subsidy“ means a benefit from public funds under federal, state or EU law granted to businesses at least in part without market consideration.

The decisive difference from fraud under Section 263 StGB: subsidy fraud does not require proof of an intent to deceive, of a resulting loss or of a completed payment. The mere incorrect statement about grant-relevant facts can suffice.

Penalties

The basic offence (Section 264(1) StGB) carries imprisonment of up to five years or a fine. In particularly serious cases (Section 264(2) StGB) – for instance where a large-scale subsidy is obtained through the use of forged documents, or where the offender abuses their powers as a public official – the range is six months to ten years. Significantly, Section 264(5) StGB also makes reckless (leichtfertig) conduct punishable, with imprisonment of up to three years or a fine. Voluntary prevention of the grant can lead to exemption from punishment under Section 264(6) StGB.

How we defend against a charge of subsidy fraud

Our defence begins with the exact wording of the application and the funding guidelines. We examine whether the statements said to be incorrect really concerned grant-relevant facts, whether the applicant met the eligibility requirements at the time, and whether the conduct went beyond ordinary negligence into recklessness. In Corona emergency-aid cases in particular, uncertain and changing conditions often speak against any culpable conduct.

Where a repayment is owed, early and orderly repayment is the most effective mitigating factor and can open the way to a discontinuation of the proceedings. We coordinate the criminal defence with any administrative recovery proceedings from the outset. Related topic: Fraud (Section 263 StGB).

This overview is general in nature and cannot replace advice on the individual case. Every situation must be assessed on its own facts.

Summons or accusation of Subsidy 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 Subsidy 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.