To mitigate the economic impact of the Corona pandemic, the government has launched numerous aid programs. Those who have provided false information must expect trouble due to subsidy fraud.
The governmental aids during the Corona pandemic were intended to flow quickly and as easily as possible to help companies navigate the crisis and avoid mass insolvencies. A wave of insolvencies has not occurred, and now authorities are taking a closer look to see if the applicants actually met the requirements for the subsidies or if the state support was obtained using false information. Affected companies should take the reviews seriously. Those who have made false statements must expect to be charged with subsidy fraud, warns lawyer Michael Rainer, MTR Rechtsanwälte.
Thousands of investigations are reported to be ongoing, and the accusation of subsidy fraud can quickly arise. It should be noted that it is not only punishable to have knowingly made false statements, but careless actions can also lead to trouble. The Federal Court of Justice made it clear with its decision of May 4, 2021, that subsidy fraud occurs if false information was provided when applying for Corona aid (Ref. 6 StR 137/21).
If the authorities discover indications of incorrect information when reviewing applications for Corona aid, they will expand the investigations and also check the company’s tax information. If a conviction occurs, severe penalties are to be expected.
If someone has applied for Corona aid and later realizes that they made at least partial incorrect statements, they are obligated to correct the information retrospectively. This legally binding correction obligation may also exist if the application requirements have partially or entirely ceased to apply afterward.
Not only the applicant can be held accountable for false information, but the respective company may also face a financial penalty.
Therefore, allegations of subsidy fraud should not be taken lightly, and those affected should act immediately. Lawyers experienced in economic criminal law can provide advice.
