Fraud Penalty

What are the real potential consequences?

For most people involved, an allegation of fraud comes as a surprise. It often starts with a summons from the police, a questionnaire, or a notice from the district attorney’s office. The first concern is almost always the same: What penalty for fraud am I now facing?

It is precisely at this point that serious mistakes are often made. Many defendants try to explain the situation themselves or make a hasty statement without being familiar with the investigative file. Yet the potential penalty depends on numerous factors that can only be assessed after a careful review.

As Lawyer from Mainz I regularly represent clients who are facing fraud allegations for the first time. My goal is to assess the legal situation early on, realistically evaluate the risks, and, whenever possible, avoid adverse consequences as early as the preliminary investigation stage.

Penalties for Fraud: Key Points at a Glance

If you're short on time, here are the most important answers at a glance:

• In the case of a simple Fraud there is a risk of a Fine or a Imprisonment for up to five years.
• Also a attempted fraud is generally a criminal offense.
• A particularly serious case may involve, for example, commercial activity or large amounts of damages. In such cases, the penalty for aggravated fraud is significantly higher than for simple fraud.
• Not every criminal investigation ends in court. Under certain circumstances, a Dismissal of the Case possible.
• As a suspect, you are generally not required to comply with a police summons or provide any information regarding the matter.
• The actual penalty for fraud always depends on the circumstances of the individual case, particularly the amount of the loss, any prior convictions, and the evidence.
• The earlier the defense begins, the greater the opportunities are often to influence the course of the proceedings.

What constitutes fraud under the law?

Fraud is governed by § 263 of the German Criminal Code (StGB). A person commits a criminal offense if they cause a mistake through deception, thereby causing financial loss and securing an unlawful financial advantage for themselves or a third party.

Typical allegations include:

• Online Purchases Made Without the Intention to Pay
• Sales Without Actual Delivery
• Insurance Fraud
• Credit Fraud
• Investment Fraud
• Subsidy Fraud
• Trade Credit Fraud

In my practice, I have seen time and again that not every financial dispute automatically constitutes fraud. The key question is often whether there is, in fact, a demonstrable intent to deceive.

What penalty does the law prescribe for fraud?

There is no one-size-fits-all answer to the question, „What is the penalty for fraud?“ The legislature has deliberately established a broad range of penalties.

The following applies to simple fraud:

• A fine or
• Imprisonment for up to five years

The specific penalty for fraud depends, in particular, on the following factors:

• Amount of the damage
• Criminal record
• Number of offenses
• Crime Planning
• Personal circumstances
• Post-meal behavior
• Confession or Lack of Insight

The more carefully the individual circumstances are considered, the more accurately the actual risk of punishment can be assessed.

Overview: What Penalties Apply to Which Fraud Charges?

It is important to note that the statutory range of penalties does not automatically mean that the maximum penalty will be imposed. The actual sentence is always determined on a case-by-case basis.

Penalties for Fraud for First-Time Offenders

Many clients ask me whether they could face a prison sentence even for a first-time offense.

In many cases, the answer is no.

The following outcomes are particularly common among first-time offenders:

• Termination of the proceedings
• Hiring Subject to Conditions
• Fine
• Probation

Nevertheless, no one should underestimate an allegation of fraud. Even for individuals with no prior record, incriminating circumstances can lead to significantly harsher consequences.

Calculation Example: How much can a fine be?

Many people who are affected underestimate the financial impact of a fine.

Example:

• Monthly net income: 2,100 euros
• Daily rate: approx. 70 euros

If the court imposes a fine of 90 daily rates, the result is:

90 × 70 euros = 6,300 euros

In addition, entries on the criminal record may be made once a certain threshold is reached. Therefore, the focus should not be solely on whether a prison sentence was imposed.

Attempted Fraud: Is the Attempt Itself a Criminal Offense?

Yes.

The penalty for attempted fraud is expressly provided for by law. Actual financial loss does not necessarily have to have occurred for this to apply.

A typical example:

Someone lists an item for sale on a marketplace that doesn't actually exist. The buyer realizes this in time and does not pay.

Even if no financial loss has occurred, it may still constitute a criminal attempt at fraud.

However, the legal assessment of the experimental stage often opens up important lines of defense that should be carefully examined.

Serious Fraud: When Will Penalties Increase Significantly?

The situation becomes particularly serious in what is known as a “particularly severe case.”.

The penalty for aggravated fraud is:

• Imprisonment for a term of six months to ten years

A particularly severe case can be assumed, for example, in the following situations:

• commercial activities
• particularly high amounts of damage
• committed as part of an organized criminal group
• numerous victims
• professional crime planning

Common Mistakes After Being Accused of Fraud

In my daily work, I see the same mistakes over and over again.

Immediate statement to the police

Many defendants believe they can quickly clear up misunderstandings. However, without access to the investigative file, this is often risky.

Contacting the Injured Party

Well-intentioned apologies or explanations may later be interpreted as incriminating evidence.

Ignoring Letters from Government Agencies

Those who miss deadlines or fail to take allegations seriously often forfeit important opportunities to defend themselves.

Checklist: What Should You Do Now?

If you are under investigation for fraud:

✓ Stay calm

✓ Do not provide any information about the matter

✓ Keep documents in a safe place

✓ Keep deadlines in mind

✓ Do not make any statements on your own to the injured parties

✓ Seek legal advice early on

These simple measures can often significantly improve the initial situation.

Can a fraud case be dismissed?

Yes.

Not every preliminary investigation automatically ends up in court.

Depending on the evidence, the following possibilities, for example, may be considered:

• Case Dismissed Due to Lack of Suspicion
• Dismissal Due to Insignificance
• Hiring Subject to Conditions
• Hiring for Business Reasons

My goal is always to assess at an early stage whether a public trial can be avoided altogether. In many cases, there are already opportunities during the preliminary investigation to positively influence the course of the proceedings. I represent clients not only in Mainz and Wiesbaden, but also as Criminal law lawyer in Darmstadt in cases of fraud allegations and other criminal proceedings.

Conclusion: The penalty for fraud always depends on the specific case

The question of the specific penalty for fraud can never be answered based solely on the charges. The decisive factors are the evidence, the amount of damages, personal circumstances, and the specific defense.

If you are under investigation for fraud, you should not make any hasty statements. Only after a careful analysis of the investigative file can a reliable assessment be made of the actual risks involved and which defense strategies are likely to be successful. That is precisely where I come in as a criminal defense attorney. 

Frequently Asked Questions About Penalties for Fraud