Specialist Lawyers in Fraud and Deception Offenses
We are a criminal defense law firm in Madrid specializing in fraud and deception offenses. Valmaseda Abogados has maintained a strong defense in fraud cases, achieving outstanding results nationwide, especially before the Audiencia Nacional (National Court), obtaining acquittals for our clients or case dismissals during the investigation phase.
What Does the Crime of Fraud Consist Of?
For an act to be considered the crime of fraud, the following elements must be present:
Significant Deception (“engaño bastante”): A lie or representation that induces another person to voluntarily hand over something of value, giving the appearance of sufficient reality and seriousness to deceive a reasonably prudent person.
For example: if someone offers a luxury brand diamond ring for €5, a reasonably perceptive person may conclude it is fake — so buying it would not constitute fraud because the deception cannot be deemed sufficiently credible.Essential Error by the Victim: The deception must cause the victim to act under a false belief that the other person has told the truth.
Voluntary Transfer of Property: As a result of the deception and the victim’s error, there must be a voluntary disposition of property, causing financial loss.
Intent for Profit (“ánimo de lucro”): The perpetrator’s goal is to obtain a benefit by using the deceived person, meaning the loss suffered by the victim and the benefit gained by the fraudster are directly linked.
Fraud can also include the following actions when done for profit:
Performing computer manipulation or similar acts to carry out unauthorized transfers causing loss to a third party.
Creating, introducing, possessing, or facilitating software used solely to commit fraud.
Using credit cards, debit cards, traveler’s checks, or the data on them to carry out transactions that harm the cardholder or a third party.
These situations are considered fraud under the Spanish Criminal Code for the basic offense.
Aggravated Forms of Fraud
The penalty is higher when the fraud:
Involves essential goods, housing, or other socially significant property.
Is committed by abusing another’s signature, or by removing or hiding any official or public process, file, protocol, or document.
Involves property of artistic, historical, cultural, or scientific value.
Causes particularly serious harm considering the victim’s or their family’s economic situation.
Involves amounts exceeding €50,000.
Affects a large number of people.
Is committed by abusing existing personal relationships between the victim and the fraudster, or by taking advantage of the fraudster’s business or professional credibility.
Constitutes procedural fraud, such as manipulating evidence in legal proceedings that leads a judge to issue a decision based on that manipulated evidence, harming another party or a third party.
Threshold for Fraud
If the amount defrauded does not exceed €400, the penalty is a fine of 1 to 3 months.
For higher amounts, other factors are considered (such as economic harm, the relationship between the parties, and the methods used) to determine whether a more severe penalty should be imposed beyond the basic offense.
Penalties for Fraud
Minor fraud: Fine of 1 to 3 months.
Basic fraud offense: Imprisonment from 6 months to 3 years.
Aggravated fraud: Imprisonment from 1 to 6 years plus a fine.
If the defrauded amount exceeds €250,000: Imprisonment of 4 to 8 years plus a fine.
Can legal entities be held liable for the crime of fraud?
Yes. Legal entities (companies) can currently be considered perpetrators of the crime of fraud. The penalties imposed are fines, and the amount is proportional to the prison sentence that would apply if the offense were committed by a natural person (an individual):
A fine of 3 to 5 times the amount defrauded when the offense carries a potential prison sentence of more than 5 years.
A fine of 2 to 4 times the amount defrauded in all other cases.
In addition, other measures may also be ordered, such as:
Dissolution of the legal entity.
Court-appointed judicial intervention to protect the rights of employees or creditors for a maximum period of 5 years.
Find Us at Our Madrid Office
Contact our Madrid office for legal assistance and defense in fraud and scam cases.
