Have you invested in shares, funds, real estate or companies and subsequently discover that you have become a victim of investment fraud? In such a case, you should consult a legal expert as soon as possible. Because now, the question arises whether you will ever see the money you invested again and how you can take action against the person(s) responsible.
The German law firm Schlun & Elseven Rechtsanwälte has comprehensive expertise in the field of German business criminal law as well as investment and capital market law. Our lawyers ensure that all evidence of investment fraud is promptly secured and that all formalities required for a criminal complaint are appropriately complied with. We represent you in so-called adhesion proceedings to assert your claims for damages.
For persons who have been confronted with the accusation of investment fraud, we offer competent and committed defence. With excellent expertise and years of experience, our legal team is ready to provide you with comprehensive advice and defence. Our lawyers ensure that you strengthen your position during the investigation process and that your rights as an accused person are always protected.
Investment fraud under German law
Investment fraud is a special form of fraud and regulated as such in Section 264a of the German Criminal Code (StGB). Accordingly, a person who makes incorrect advantageous statements to a larger circle of persons or conceals disadvantageous facts that significantly influence the decision to acquire investments on the capital market or to increase already invested deposits is liable to prosecution. Capital investments such as securities and company shares are covered, which the offender must offer publicly (in prospectuses, presentations or overviews). This special form of fraud is punishable by a prison sentence of up to three years or a fine.
If you suspect that you have become a victim of investment fraud, you should contact a legal expert as soon as possible and file a complaint. Quick action is usually crucial in such situations to remedy/repay for the damage that has been done. It may still be possible to reverse a transfer that has been made, or it may still be possible to obtain a refund through your credit card protection and the closure of bank accounts. We also advise you to keep all documents related to the fraud.
Our team will help you track down the perpetrators of investment fraud. Our German lawyers will work with the authorities to freeze your bank accounts, secure your assets and recover your investments where possible. We advise clients worldwide and take cross-border action when necessary. We represent you both in and out of court.
How to Prevent Investment Fraud
Investment fraud can be challenging to identify. To prevent this from happening in the first place, you should take appropriate preventive measures. Particular attention should be paid to the following warning signs:
- Very high returns promised: When faced with investments where the investor is promised very high returns, particularly those based abroad, caution is strongly advised. Allow investment experts to analyse what is on offer and to assess whether it is from a credible source. Similarly, getting further advice before accepting an investment where the agent involved is higher than the standard commission rate is best practice. Allow our investment experts to advise you by examining objectively what is on offer.
- Risk level not described: Investing carries risk. A certain level of risk is involved in making investments, and it is a dangerous sign when the investment agent is unwilling to discuss the level of risk involved. Make sure you have the complete picture of what is involved with the investment before taking action.
- Investment based abroad: In the event of fraud, investments made in Germany are more straightforward when pursuing them in court. It is challenging to track foreign investments, and it often takes longer and can be more complicated. However, this should not be seen as a deterrent for pursuing major frauds that have occurred in an investment made abroad.
- Refusal to meet in person: Investments where the supposed investment agent refuses to meet in person carry additional risks. This is especially concerning where the alleged agent has made the first contact. Once again, it is strongly advised not to commit to the investment until an outside advisor has exam