Abuse of trust in economic operations

Who in economic operations infringes the duty to protect other people’s economic interests based on law, decision of administrative or judicial authority, legal act or relationship of trust and thus obtains for himself or another person an illegal economic benefit and in that way or otherwise causes damage to the person whose economic interests he was obliged to take care of, shall be punished by imprisonment of six months to five years. If substantial material gain has been obtained or significant damage caused, the perpetrator shall be punished by imprisonment of one to ten years.

According to the case law, significant ecomonic interest and significant damage is all over HRK 60,000.00.

For example, we further list several examples of this criminal offense in practice, such as the actions of a responsible person in a legal entity in order to obtain illegal economic interest for another legal entity, to the detriment of its own legal entity (eg making false reports, balance sheets, estimates).

Furthermore, it is considered to be a negligent conduct in the management, safekeeping, disposal and overall care of someone else’s property. In addition, it is considered to be a conclusion of legal transactions contrary to the authority or interest of the property owner.

Abuse in the way of withdrawing funds from a company, due to which its creditors have nowhere to settle or can hardly do so – this is the case especially when it comes to realted companies.
The use of the company’s funds to acquire the share of its member in another company, although there is no economic justification for such disposal.
Interest-free giving of funds of one company to another company or a member of the company or with unjustifiably low interest rates and a long repayment period.
When a member of the company as a creditor gives funds to the company under unfavorable conditions and thus derives from it the insterest inappropriate to his position.
Withdrawing funds from the company by fictitious acts, often through offshore companies.

This criminal offense can be committed by acts or omissions. When assessing the existence of a criminal offense, one should start from the basic standard of conduct in economic operations: while fulfilling obligations, the responsible person is obliged to act as a good and conscientious businessman.