Subsidy Fraud Lawyer in Madrid
If you are being investigated for subsidy fraud (having obtained public financial aid through false information or by concealing facts that would have prevented it, or having diverted funds to a purpose other than the one granted, for an amount exceeding €10,000), you face a penalty that can reach 5 years’ imprisonment plus a fine of up to six times the amount and special disqualification. Oversight of Next Generation funds and European grants has caused this type of case to surge.
We defend business owners, self-employed professionals, individual beneficiaries, grant managers and public officials investigated in cases related to public subsidies. Your call is answered directly by Antonio Cervantes (ICAM 141.301) or Guillermo García-Escribano. 681 256 507, 24 hours.
Other crimes against Public Administration we also defend
Subsidy fraud is often accompanied by other offences under Title XIX when public officials are involved in the granting or oversight process.
The pillar page of the cluster, providing the full picture of crimes against Public Administration.
- Regional and national subsidies
- European funds and Next Generation
- Misuse of funds for a different purpose
- Fine of up to six times the amount
When the official overseeing the grant misappropriated or diverted the funds awarded.
- Misappropriation of public funds
- Temporary use without intent to appropriate
- Corporate cards and expense allowances
- Absolute disqualification for 6-10 years
When the granting or oversight of the subsidy was carried out in exchange for gifts, commissions or favours.
- Passive bribery by the managing official
- Active bribery by the private beneficiary
- Cases involving UDEF and the Anti-Corruption Prosecutor's Office
- Corporate criminal liability
When the decision that granted or oversaw the subsidy is challenged as knowingly arbitrary.
- Arbitrary administrative decisions
- Irregular granting of aid
- Justifications accepted without proper oversight
- Special disqualification for 9-15 years
We defend the subsidy beneficiary (business owner, self-employed professional, association, private individual) as well as the official or authority involved in the granting or oversight process. We handle cases before the Madrid Courts of Instruction (Plaza de Castilla and outlying courts), before the National Court when the case involves European funds or affects several Autonomous Communities, and before the High Court of Justice of Madrid in cases involving special jurisdiction (aforamiento). When criminal proceedings run in parallel with the Administration’s own reimbursement file or with the General Comptroller’s Office, we coordinate the defence strategies to avoid contradictions.
When you should call a criminal defense lawyer specializing in subsidy fraud
- You have been notified of the opening of a reimbursement file with criminal implications.
- You have received a summons as a suspect following a review of the grant.
- You have received a request from the General Comptroller's Office or the Court of Auditors.
- OLAF (the European Anti-Fraud Office) has opened an investigation into your grant.
- You are a grant manager and your involvement in the granting process is being questioned.
- You received Next Generation funds and there is a dispute over their use or justification.
- You have been summoned as a witness, but the questions point to your application.
- Your current defense lawyer is not a criminal law specialist and you want a second opinion.
Why you need a specialist grant fraud lawyer from the very first moment
In grant fraud cases, the outcome is not measured only in prison time. Here is what is at stake:
- The prison sentence, which can reach 5 years. In aggravated cases (Next Generation, European funds, very high amounts), suspension of the sentence becomes more difficult.
- The proportional fine, which can reach up to six times the defrauded amount. In large grants, the fine can be more damaging than the sentence itself.
- Repayment of the aid with interest, usually also demanded through administrative channels (reintegro).
- Loss of beneficiary status for any public aid for several years, closing the door to future calls for applications.
- Confiscation of the benefit obtained and of assets acquired with the aid.
- Criminal liability of the company (art. 308 ter CP): fine, dissolution, prohibition from contracting with the public sector and prohibition from obtaining grants.
- Investigation by OLAF and possible claims by the European Union when European funds are involved.
24-hour assistance for arrests, summonses and urgent detentions
Tel. 681 256 507 · [email protected]
How we build your defense as a criminal defense law firm
Grant fraud cases are won or lost on the documentation. Here is what we do:
- We reconstruct the file. Call for applications, governing rules, application, award decision, supporting documents submitted, checks carried out by the Administration. Every page counts.
- We challenge intent. Article 308 CP requires wilful concealment or misrepresentation. If the information provided was correct at the time of the application and any subsequent deviations were unintentional, the charge falls apart.
- We challenge the amount. The threshold for the offense is 10,000 €. A well-prepared accounting expert report can reduce the defrauded amount, change the classification of the offense or redirect the case to an administrative infringement.
- We challenge the purpose. In cases of diversion of funds, the debate is whether the use given complied with the governing rules or whether the change had documented justification.
- Defense accounting expert report. In large grants, the prosecution’s expert report is almost always the key evidence. We rebut it with our own experts where there is a basis to do so.
- Repairing the harm. Full repayment of the amount before the trial acts as a highly qualified mitigating factor and can reduce the sentence by one or two degrees.
- Corporate criminal compliance for the beneficiary company when the case affects the legal entity: an effective program adopted before the events.
- Strategic plea agreement when the documentary evidence is overwhelming. Well negotiated, it can allow for suspension of the sentence.
Other white-collar crimes we also defend
Subsidy fraud often connects with other offences: crimes against public administration in general, embezzlement, bribery, malfeasance in public office, influence peddling, tax offences, money laundering and disloyal administration. When a case spans several strands, we design a single, unified strategy.
24-hour assistance for arrests, summonses and urgent detentions
Tel. 681 256 507 · [email protected]
How criminal proceedings for subsidy fraud unfold, step by step
The typical course of events is as follows:
- Administrative review. The first warning usually comes through administrative channels: a request from the Comptroller’s Office, a proposal for repayment, or an OLAF report on European funds.
- Summons as an investigated person. If the review reveals indications of criminal conduct, the file is referred to the Public Prosecutor’s Office and a judicial summons follows. The prudent course is not to make a statement until you have seen the case file.
- Pre-trial investigation. Accounting expert reports from the Comptroller’s Office, witness statements from administrators and technical staff, bank information requests, and full documentation of the grant scheme.
- Order for abbreviated proceedings and formal accusations. The Public Prosecutor, the accusation brought by the State Legal Service or the injured Autonomous Community, and your defence.
- Trial. Criminal Court or Provincial Court; the National Court when European funds are involved or the case spans several autonomous regions.
- Judgment and appeals. Appeal, cassation and, where applicable, a constitutional appeal for protection (amparo). Repayment and loss of beneficiary status are enforced in parallel.
A clear process, from start to finish
From the first contact to the resolution of the proceedings, we follow a transparent methodology so that you know what to expect at every step.
First contact
We listen to your situation in a confidential initial meeting, assess urgency and define the next steps.
Case analysis
We study the case file, gather evidence and prepare an internal report setting out the defence options.
Strategy and preparation
We design the procedural strategy, prepare submissions and work with you through every key milestone of the proceedings.
Defence at trial
We take on the defence at trial with thorough preparation of witness testimony, expert evidence and any relevant appeals.
24-hour assistance for detainees, every day of the year
We take the call, travel to you and take on your defence from the very first minute. Madrid and throughout Spain.
Answers to the most common queries
If your question isn’t answered here, write to us: we reply within 24 working hours, always in strict confidence.
I received a grant/subsidy and then couldn't justify the full amount. Is that a crime?
Not necessarily. Article 308 CP requires intentional simulation or concealment, not a mere justification problem. If the difficulty in justifying the funds arose from documentary issues, delays or explainable deviations, the appropriate route is administrative repayment, not criminal proceedings. For it to be a crime, there must be intentional deception.
Am I going to go to prison?
It depends on the amount and the type of offence involved. For the basic offence (from €10,000 to €50,000) the sentence usually allows for suspension of execution if there are no prior convictions and the money is repaid. For the aggravated offence (over €50,000, European funds, particular economic significance) the sentence can reach 5 years and suspension becomes more difficult.
The grant came from Next Generation funds. Does that change anything?
Yes. European funds carry a specific aggravating circumstance, and the European Commission and OLAF also get involved. Proceedings may be heard before the National Court, with the State Attorney’s Office joining as prosecution. Repayment is also pursued through European channels.
If I repay the money, will the case be dropped?
Repayment does not automatically extinguish criminal liability, but it operates as a highly qualified mitigating circumstance (art. 21.5 CP) when it is full and voluntary before the trial. If properly argued, it can reduce the sentence by one or two degrees and open the door to suspension. In some cases, it can also allow the case to be negotiated for dismissal with the Public Prosecutor’s Office.
I'm the director of the company that received the aid. Is the company also liable?
Yes. Article 308 ter CP establishes the autonomous criminal liability of legal entities. The company can be penalised with a fine, dissolution, a ban on contracting with the public sector, and a ban on obtaining grants or subsidies. An effective compliance programme, adopted before the events took place, acts as a factor for exemption or mitigation.
Visit us in Madrid
The firm’s physical office is right in the city centre. We see clients by appointment to ensure each case gets the attention it requires.
Estudio Jurídico Cervantes & Gª-Escribano
Book an initial consultation or call us directly. We offer in-person, telephone and video-conference consultations.
- Calle Goya 20, 1st Floor Left · 28001 Madrid
- 681 256 507 · 24 hours, every day
- [email protected]
- Monday to Friday · 9:00 AM – 7:00 PM (24/7 assistance for detainees)
If you are being investigated for grant fraud, the first thing to do is call
The sooner we join your defence, the more room there is to avoid prison, limit the fine, and preserve your eligibility as a beneficiary for future calls for grants. One of the firm’s partners will answer the phone directly, 24 hours a day. We are based in Madrid and travel to any court in the country. 681 256 507.
