General information
White-collar crime includes offenses committed in connection with economic and business activities. It can be committed by individuals, but also by companies, often with the aim of obtaining financial benefits for themselves or for third parties. The crimes are usually well planned and often take advantage of relationships of trust or the complexity of modern economic structures. The focus is on property and corruption offenses, which not only affect the direct victim, but often have a wide impact through frequent media coverage and can lasting effect on confidence in entire industries or markets.
A characteristic feature of white-collar crime is that it often takes place in secret. White-collar crime is often uncovered only years later, e.g. when there is a change in management or by chance. This makes it particularly challenging to prosecute, as investigating authorities must rely on extensive research and the processing of complex facts that often go back a long way.
Typical offenses in commercial criminal law
Commercial criminal acts encompass a wide range of punishable offenses that fall under white-collar criminal law. Typical white-collar criminal offenses are
- Fraud and aggravated fraud (Sec 146 of the Austrian Criminal Code (“StGB”) and Sec 147 StGB): Fraud, especially aggravated fraud, is one of the most common forms of commercial criminal law. In summary, a person is induced to commit an act that damages assets by deceiving them about facts.
- Fraudulent insolvency and grossly negligent interference with creditor demands (Sec 156 StGB and Sec 159 StGB): When insolvency is imminent, perpetrators often try to conceal assets or harm creditors by putting assets aside.
- Money laundering (Sec 165 StGB): Concealing the illegal origin of funds obtained through criminal acts is another typical offense in the area of commercial criminal law. Money laundering often occurs in connection with organized crime or corruption.
- Embezzlement and misappropriation (Sec 153 StGB and Sec 133 StGB): In summary, these are offenses in which a person of trust misuses the assets of the company or another person.
- Untenable representation of fundamental information concerning certain corporations (Sec 163a StGB): The manipulation of company balance sheets in order to improve the presentation of financial results is a criminal offense under commercial criminal law that undermines the trust of investors and creditors of the company.
These offenses are often closely related and are frequently committed in combination in order to conceal or facilitate criminal acts. Lawyers practicing in white-collar criminal law require not only a strong background in criminal law, but also a special understanding of economic and business processes. Allegations of Cybercrime are also becoming increasingly common, presenting law enforcement authorities with new challenges, particularly due to the technical issues involved and the often cross-border component.
Penalties for economic offenses
The punishment for economic offenses in Austria varies greatly and depends on the severity of the offense committed. Fines are often the first consequence for minor offenses or in cases where the criminal guilt is not overly serious. However, the criminal offenses in the Austrian Criminal Code also consistently provide for prison sentences. In serious cases of white-collar crime, these can generally amount to up to ten years imprisonment. In the case of serious corruption-related criminal charges, the penalty is even up to fifteen years imprisonment.
In addition to the consequences under criminal law, the companies affected are often threatened with civil law claims, particularly in the form of claims for damages from injured parties. Damage to reputation can also have long-term consequences and have a lasting impact on the trust of customers, partners and investors.
In particular, the long-term consequences should not be underestimated. In addition to the immediate financial loss, white-collar crime often leads to a significant loss of reputation, which can have a negative impact on a company’s market position.
Preventive measures to reduce while-collar crime
The prevention of white-collar crime is of central importance in order to prevent financial damage and the loss of trust in companies and institutions. A central starting point for companies is the introduction and implementation of a compliance system. These should ensure that legal regulations and internal guidelines are adhered to and include internal controls that enable seamless monitoring of business processes, as well as guidelines and codes of conduct that define clear requirements for legally permissible and ethical behavior within the company.
In addition, companies should invest in regular training and workshops for their employees. Educating employess about the risks and consequences of white-collar crime goes a long way toward raising awareness of potential risks and identifying and preventing potentially criminal behavior at an early stage. Employees are often the first line of defense against white-collar crime as they are often the first to notice suspicious activity.
Another important aspect of prevention is the regular review of internal business processes. Financial transactions should be continuously monitored and controlled in order to detect irregularities at an early stage. Risk management also plays a central role. Companies should develop strategies that identify specific weaknesses in the company and implement measures to minimize these risks.
Criminal defense by a lawyer in cases of allegations of white-collar crime
If there is an allegation of a white-collar crime, a criminal defense lawyer specialising in white-collar criminal law should be called in quickly to comprehensively represent the interests of the accused.
An experienced criminal defense lawyer carefully analyses the evidence and files, which are often extensive and complex in white-collar crime matters. In addition, a specialised lawyer assesses the legal situation and informs the accused of his rights in criminal proceedings. A criminal defense lawyer also provides support support in presenting exculpatory evidence and refuting the allegations to the prosecuting authorities.
Prompt legal assistance in the event of damage caused by white-collar crime
Individuals and companies that have been harmed by white-collar crime should take the necessary legal steps in good time. In addition to preparing a statement of facts/criminal complaint to the criminal prosecution authorities, this also includes the private participation in criminal proceedings. Under certain circumstances, it may also be necessary to bring a civil action.
