(1) Whosoever

1.  makes incorrect or incomplete statements about facts relevant for granting a subsidy to himself or another that are advantageous for himself or the other, to a public authority competent to approve a subsidy or to another agency or person which is involved in the subsidy procedure (subsidy giver);

2.  uses an object or monetary benefit the use of which is restricted by law or by the subsidy giver in relation to a subsidy contrary to that restriction;

3.  withholds, contrary to the law relating to grants of subsidies, information about facts relevant to the subsidy from the subsidy giver; or

4.  uses a certificate of subsidy entitlement or about facts relevant to a subsidy, which was acquired through incorrect or incomplete statements in subsidy proceedings,

shall be liable to imprisonment not exceeding five years or a fine.

(2) In especially serious cases the penalty shall be imprisonment from six months to ten years. An especially serious case typically occurs if the offender

1.  acquires, out of gross self-seeking or by using counterfeit or falsified documentation, an unjustified large subsidy for himself or another;

2.  abuses his powers or his position as a public official; or

3.  uses the assistance of a public official who abuses his powers or his position.

(3) Section 263(5) shall apply mutatis mutandis.

(4) Whosoever acts in gross negligence in cases under subsection (1) Nos 1 to 3 above shall be liable to imprisonment not exceeding three years or a fine.

(5) Whosoever voluntarily prevents the granting of a subsidy on the basis of theoffence shall not be liable pursuant to subsections (1) and (4) above. If the subsidy is not granted regardless of the contribution of the offender he shall be exempt from liability if he voluntarily and earnestly makes efforts to prevent the subsidy from being granted.

(6) In addition to a sentence of imprisonment of at least one year for an offence under subsections (1) to (3) above the court may order the loss of the ability to hold public office, to vote and be elected in public elections (section 45(2) and (5)). Objects to which the offence relates may be subject to a deprivation order; section 74a shall apply.

(7) A subsidy for the purposes of this provision shall mean

1.  a benefit from public funds under Federal or state law for businesses or enterprises, which at least in part

(a)  is granted without market-related consideration; and

(b)  is intended for the promotion of the economy;

2.  a benefit from public funds under the law of the European Communities which is granted at least in part without market-related consideration.

A public enterprise shall also be deemed to be a business or enterprise within the meaning of the 1st sentence No 1 above.

(8) Facts shall be relevant to a subsidy within the meaning of subsection (1) above

1.  if they are designated as being relevant to a subsidy by law or by the subsidy giver on the basis of a law; or

2.  if the approval, grant, reclaiming, renewal or continuation or a subsidy depends on them for reasons of law.