To mitigate the economic impact of the Corona pandemic, the government has launched numerous aid programs. Those who provided false information must expect trouble due to subsidy fraud.
The government aid during the Corona pandemic was supposed to flow quickly and as uncomplicated as possible, so that companies could survive the crisis and not fall into insolvency one after another. A wave of insolvencies has been avoided, and now the authorities are retrospectively looking more closely at whether the applicants actually met the qualifications for the subsidies, or if the government support was obtained with false information. Affected companies should take these reviews seriously. Those who provided false information must expect charges of subsidy fraud, warns lawyer Michael Rainer, MTR Rechtsanwälte.
Thousands of investigations are said to be already underway, and the allegation of subsidy fraud can quickly arise. It should be noted that it is not only punishable to have knowingly provided false information, but even negligent behavior can lead to trouble. The Federal Court of Justice clarified in its decision of May 4, 2021, that subsidy fraud occurs when false information was provided when applying for Corona aid (Az. 6 StR 137/21).
If the authorities discover indications of inaccurate information while reviewing the applications for Corona aid, they will expand the investigations and, for example, also examine the company’s tax information. If a conviction occurs, significant penalties are to be expected.
If someone applied for Corona aid and later realized that they had made at least partially inaccurate statements, they are obliged to correct the information retrospectively. This obligation to correct under penalty can also exist if the application requirements have partially or completely ceased retroactively.
Not only can the applicant be held accountable for false information, but the respective company may also face a fine.
Therefore, allegations of subsidy fraud should not be taken lightly, and those affected should act promptly. Lawyers experienced in economic criminal law can provide advice.
