Breach of trust is a central criminal offense in commercial criminal law and can be punished with fines and imprisonment. However, it is often disputed whether breach of trust has occurred.
The accusation of breach of trust frequently arises in commercial criminal law. Anyone confronted with the accusation of breach of trust should not take it lightly, as the consequences can be significant. The range of penalties spans from fines to imprisonment of up to five years, explains the commercial law firm MTR Legal Rechtsanwälte, whose lawyers also provide advice on legal issues related to commercial criminal law.
The offense of breach of trust is regulated in § 266 of the German Penal Code (StGB). Accordingly, breach of trust is the abuse of authority over the disposition of another’s assets or a violation of the imposed duty to safeguard another’s financial interests, resulting in a disadvantage to those financial interests. However, it is often disputed in many cases whether breach of trust actually exists.
This is also demonstrated by a decision of the Federal Court of Justice dated January 10, 2023 (Case No. 6 StR 133/22). The BGH dealt with the contentious bonus payments and high salaries for leading VW works council members that have been disputed for years. The Regional Court of Braunschweig acquitted the responsible VW managers; however, the BGH has now overturned the acquittals and remanded the case back to the Regional Court.
The proceedings involved fixed salary payments and voluntary bonus payments to released works council members in the years 2011 to 2016, which allegedly were significantly above the usual level. While the Regional Court of Braunschweig had seen the fulfillment of the offense of breach of trust in these unusually high payments, the managers responsible for the payments lacked the necessary intent, as they relied on assessments from internal and external advisors and also found an existing remuneration system. Therefore, they mistakenly assumed that their decisions did not violate any obligations.
The BGH has now overturned the acquittals. Although the Regional Court correctly recognized that the legal prerequisites for the offense of breach of trust could be fulfilled, the factual findings made in the judgment did not meet the legal requirements for presentation. Therefore, it cannot be assessed whether the Regional Court rightly denied intent, according to the BGH.
MTR Legal Rechtsanwälte provides its clients in commercial criminal law with experienced lawyers.
