FRAUD AND ILLEGAL EXACTIONS

The crimes of fraud and illegal exactions are regulated in arts. 436 to 438 bis of the Penal Code, which punish the following conducts:

1. Fraudulent acts of authorities and public officials in public procurement or in the liquidation of public patrimonial rights (art. 436 of the Penal Code). Specifically, it punishes, with prison sentences of 2 to 6 years and special disqualification from public employment or office and from the exercise of the right to passive suffrage for a period of 6 to 10 years, the authority or official who, intervening by reason of his position in a public procurement or in liquidations of public effects, conspires with the interested parties to defraud any public entity. The same penalty of imprisonment and disqualification from obtaining public subsidies and aid, from contracting with public bodies and from enjoying tax and Social Security benefits or incentives for a period of 2 to 7 years is also imposed on any individual who conspires with an authority or official to defraud a public entity.
2. Illegal extortions (art. 437 of the Penal Code). It is punishable with a fine of 6 to 24 months and suspension of employment or public office for a period of 6 months to 4 years, to the authority or official who demands duties, tariffs or fees that are not due.
3. Fraud and fraud of Social Security benefits with abuse of office (art. 438 of the Penal Code). The authority or official who, abusing his position, commits a crime of fraud or fraud of benefits of the Social Security System, in which case the penalty will be imposed in its upper half, and may reach the highest degree, and special disqualification for employment or public office and for the exercise of the right to passive suffrage for a period of 3 to 9 years.
4. Finally, following the reform that came into force in December 2022, art. 438 bis of the Criminal Code punishes the authority who, during the performance of his duties and up to 5 years after leaving office, has obtained an increase in assets or a cancellation of obligations for a value of more than 250,000 euros compared to his accredited income, provided that he openly refuses to comply with the requests of the competent bodies aimed at verifying their justification. These acts carry a prison sentence of 6 months to 3 years, a fine of up to three times the profit obtained, and special disqualification from public employment or office and from exercising the right to passive suffrage for a period of 2 to 7 years.