Nationwide criminal defense and consulting for companies, managing directors and other executives
Economic criminal law encompasses criminal offenses arising from the business environment. It ranges from fraud and embezzlement to insolvency, labor, and corruption offenses, as well as money laundering. Those potentially affected include not only managing directors, but also, in particular, board members, authorized signatories, compliance officers, and individuals with special professional obligations such as tax advisors, auditors, or physicians.
Proceedings in white-collar crime are characterized by their often extensive and therefore lengthy investigations. In addition to criminal penalties, the perpetrators face the threat of confiscation of assets under Sections 73 et seq. of the German Criminal Code (StGB), fines against the company under Section 30 of the German Administrative Offenses Act (OWiG), professional and trade-related consequences, and exclusion from public contracts.
The lawyers at Galen Rechtsanwälte advise and defend clients nationwide in all areas of white-collar crime. We represent defendants and companies, support witnesses, and pursue claims on behalf of injured companies in criminal proceedings.
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What is meant by economic criminal law?
Economic criminal law is not a closed code of law, but rather a collective term for criminal offenses committed in commercial transactions. Many offenses are also found in the criminal code. Of particular relevance are:
- Fraud (§ 263 StGB),
- Subsidy fraud (§ 264 StGB),
- Credit fraud (§ 265b StGB),
- Breach of trust (§ 266 StGB),
- Withholding and misappropriating wages (§ 266a StGB)
- The offenses of corruption criminal law (§§ 299 ff. StGB and §§ 331 ff. StGB)
Furthermore, offenses under environmental criminal law (§§ 324 ff. StGB) are considered part of economic criminal law.
The other relevant regulations are distributed across a multitude of subsidiary laws, including the Insolvency Code (InsO), the Money Laundering Act (GwG), the Banking Act (KWG), the Securities Trading Act (WpHG), the Foreign Trade and Payments Act (AWG), the Act to Combat Undeclared Work (SchwarzArbG), the Temporary Employment Act (AÜG) and the Act against Restraints of Competition (GWB).
These proceedings are usually handled by specialized public prosecutor's offices for economic crimes and the economic crime chambers of the regional courts.
Our focus areas in white-collar crime law
We advise and defend clients in all key areas of white-collar crime. We also advise on the effective design of compliance structures and on handling reports under the Whistleblower Protection Act.
You will find a detailed explanation for each of the allegations.
Fraud and infidelity
Fraud (§ 263 of the German Criminal Code) and breach of trust (§ 266 of the German Criminal Code) are the core offenses of white-collar crime and can affect a wide variety of situations in business. While fraud involves an act of deception against a victim, breach of trust occurs when a duty to manage assets has been violated. In both offenses, the question of whether financial loss has occurred is often central to the investigation. Further information on fraud and breach of trust can be found here.
Money laundering
Money laundering (§ 261 of the German Criminal Code) applies when an asset derived from an unlawful act is introduced into the financial and economic system, thereby concealing its true origin. Even negligence is sufficient for criminal liability. Further information on defense strategies is available from [source/contact information missing]. Allegation of money laundering You can find them here.
Labor law
Key offenses under labor criminal law include withholding and misappropriating wages (§ 266a of the German Criminal Code) as well as violations of the Act to Combat Undeclared Work, the Temporary Employment Act, and the Minimum Wage Act. Further information on Labor law You can find them here.
Insolvency criminal law
As soon as a company falls into crisis, especially when insolvency threatens, management assumes certain duties, the violation of which is punishable under insolvency criminal law. Of particular importance are delaying insolvency proceedings under Section 15a of the German Insolvency Code (InsO), bankruptcy under Section 283 of the German Criminal Code (StGB), violation of bookkeeping obligations under Section 283b StGB, and preferential treatment of creditors and debtors under Sections 283c and 283d StGB. In criminal proceedings, the precise point in time at which insolvency or over-indebtedness occurred is usually crucial. Further information on... Insolvency criminal law You can find them here.
Anti-Corruption and Competition Law
Corruption and competition criminal law serves to prevent the unfair influence of government decision-makers and market decisions. Key offenses are found in the Criminal Code, particularly in Sections 298 et seq. and 331 et seq., the Act Against Unfair Competition (UWG), the Act on the Protection of Trade Secrets (GeschGehG), and the Act Against Restraints of Competition (GWB). Further information on Anti-Corruption and Competition Law do you think ...? Find here.
Banking and capital markets criminal law
Banking and capital markets criminal law deals with offenses including loan fraud under Section 265b of the German Criminal Code (StGB), investment fraud under Section 264a StGB, market manipulation, insider trading, and violations of regulatory requirements under the German Banking Act (KWG) and the German Securities Trading Act (WpHG). For institutions and their employees, not only the potential criminal penalty but also their regulatory reliability is at stake. Further information on... Banking and capital markets criminal law You can find them here.
Medical criminal law
Doctors, hospitals, nursing services, and pharmacies are primarily facing accusations of billing fraud under Section 263 of the German Criminal Code (StGB). In addition, they face charges of healthcare corruption under Sections 299a and 299b of the StGB, which cover collaborations between healthcare providers and prescribers. Alongside criminal proceedings, they risk losing their license and facing professional disciplinary action. Further information is available on [link to relevant information]. Medical criminal law You can find them here.
Criminal charges in economic criminal law
At Galen Attorneys at Law, we not only represent defendants in white-collar crime cases, but also support companies that have suffered losses due to embezzlement, fraud, or corruption by their own employees or business partners in actively pursuing their interests through criminal charges. Careful preparation is crucial to ensure that the charges are not ineffective or trigger investigations against the company itself. Further information on Criminal charges in economic criminal law You can find them here.
Confiscation and asset forfeiture
In addition to punishment, Sections 73 et seq. of the German Criminal Code (StGB) provide for the confiscation of economic benefits obtained through or in connection with a criminal offense. Confiscation often affects defendants and companies more severely than the punishment itself. Even third parties who are not criminally charged can be subject to confiscation. During the preliminary investigation, authorities secure assets through asset seizure pursuant to Section 111e of the German Code of Criminal Procedure (StPO). Further information on Confiscation and asset forfeiture You can find them here.
What to do in case of search, seizure and asset freeze?
Many affected individuals first learn that criminal proceedings are underway against them when a search is conducted in accordance with Sections 102 and 103 of the Code of Criminal Procedure.
Remain calm and do not resist the measure. Request a copy of the search warrant and note the investigating authority and the case number. Do not make any statements regarding the matter and contact a lawyer specializing in white-collar crime immediately.
What consequences might the company itself face?
German law does not recognize criminal liability for legal entities. However, companies can still be significantly sanctioned under administrative offense law, even if no specific natural person is convicted.
According to Section 30 of the Administrative Offenses Act (OWiG), a fine can be imposed on a company if a manager has committed a criminal offense or an administrative offense. Section 130 of the OWiG further sanctions breaches of supervisory duties if inadequate controls have enabled company-related violations.
Further consequences
In addition to the imposition of the main sentence, further consequences may be imposed. The most significant of these are:
- Registration in the competition register and exclusion from public procurement procedures
- Withdrawal of permits, approvals and licenses
- Commercial law measures
- Professional consequences and professional ban according to § 70 of the German Criminal Code
- Exclusion from the position of managing director pursuant to Section 6 Paragraph 2 of the German Limited Liability Companies Act (GmbHG)
Defense in white-collar crime – Defense and advice from Galen Lawyers
Galen Rechtsanwälte is a Berlin-based law firm specializing in criminal law and compliance. We represent companies, managing directors, board members, and professionals nationwide in white-collar crime proceedings.
As a rule, we first request access to the case file. Based on this, we assess the allegations made by the public prosecutor's office and develop a defense strategy tailored to your specific case and interests. We accompany you during searches and interrogations, throughout the investigation and main proceedings, as well as in the appeals process.
At Galen Attorneys at Law, we think beyond the criminal proceedings. We keep a close eye on the confiscation of assets, fines against the company, and professional, commercial, and regulatory consequences from the outset, involving colleagues from other disciplines and a proven network of auditors and experts as needed. In addition to defense, we provide preventative advice on compliance structures and internal investigations and represent aggrieved companies in enforcing their own claims in criminal proceedings.
Please feel free to contact us to arrange an appointment.
Economic criminal law encompasses, among other things, fraud and embezzlement, the withholding and misappropriation of wages, insolvency offenses, money laundering, corruption and competition offenses, banking and capital market offenses, environmental offenses, and violations of the Foreign Trade and Payments Act. There is no exhaustive statutory definition. The decisive factor is that the offense was committed in a business or commercial context.
Those accused of a crime are usually made aware of an investigation through questionnaires, summonses, searches, or account freezes. A defense attorney can clarify whether proceedings have been initiated and what role you play in them.
You are not obligated to comply with a police summons as a suspect. You must appear if summoned by the public prosecutor's office or a court, but you are not required to testify. Stricter rules apply to witnesses, but they have the right to refuse to give evidence if it would incriminate them. Have your legal position clarified beforehand and represented and defended accordingly.
Have the search warrant presented to you, do not resist, and do not make any statements about the matter. Immediately contact a lawyer specializing in white-collar crime.
Under confiscation provisions of Sections 73 et seq. of the German Criminal Code (StGB), the state seizes the profits gained from the offense. This can also affect individuals and companies against whom no criminal charges have been brought.
German law does not recognize criminal liability for legal entities, but it does provide for fines for associations under Section 30 of the Administrative Offenses Act (OWiG) and for the prosecution of breaches of supervisory duties under Section 130 of the OWiG. In addition, confiscation of assets is a particular possibility.
As early as possible, and in any case before making any statement to the investigating authorities. The influence on the outcome is greatest during the investigation. Anyone who only reacts after charges have been filed loses significant options.