Business Criminal Law: A Primer for Management and Economics

Preface
Country Code Abbreviations
Selected Textbooks for Legal Studies on Business and Economic Criminal Law
	Austria
	Germany
	Switzerland
Translations of Legal Codes, Statutes, Ordinances or Other Legal Materials
	Austria
	Germany
	Switzerland
Contents
List of Abbreviations (Selections)
Part I: Introduction
	1: Approaching the Phenomenon: Business Crimes in Space and Time
		1.1 Understanding the Relationship Between Crime and Economics
		1.2 So Close Yet So Far
			Volkswagen (VW) Diesel Scandal-Case
			Collapse of a Textile Factory-Case
			Dam Breach Disaster in Brazil-Case
		1.3 Time (Doesn´t!) Heal All Wounds
			Toxic Building Material-Case
			Burning Drinking Water-Case
		1.4 Purposes and Structure of the Book
		Literature
	2: Evolution of Business Criminal Law
		2.1 Industrialisation
			Electric Power Theft-Case
		2.2 Risk Society
			Vajont Dam Burst-Case
			Bhopal Gas Accident-Case
		2.3 Globalisation and Digitalisation
			``Operation Paper Castle´´
			Gold Laundering-Case
			Vinci-Case
			Silk Road-Case
			Facebook-Cambridge Analytica Data Breach-Case
		2.4 Global Economic Crisis of 2008
			Subprime-Case
		2.5 Global Health Crisis (Covid-19 Pandemic)
			Miracle Cure-Case
		Literature
	3: Notion of Business Criminal Law
		3.1 Terminology
		3.2 Defining Business Criminal Law
			3.2.1 Offender Related Definitions
				Profile of the Average Business Criminal
			3.2.2 Offence Related Definitions
				How Big Is the Damage of Business Crime?
			3.2.3 Interim Result
		3.3 Characteristics and Motivation
			3.3.1 Characteristics
				Characteristics of Business Crime
			3.3.2 Motivation
			3.3.3 Companies as Victims?
		3.4 The Role of Criminal Law
			Enron and WorldCom-Case
			Parmalat-Case
			Prevention Strategies
		Literature
Part II
	4: Sources of Business Criminal Law
		4.1 Preliminary Remarks
		4.2 Criminal Code
			Case Law - A Legal Source?
			4.2.1 General Section
			4.2.2 Specific Section
		4.3 Criminal Law Beyond the Criminal Code
			Examples for Cantonal Criminal Law:
			4.3.1 General Rules
			4.3.2 Specific Rules
		4.4 Constitutional Law
			Constitutional Criminal Law Principles
		4.5 European Law
			4.5.1 European Integration and Criminal Law
				How Does the EU Involve Itself in Criminal Law Making?
			4.5.2 European Perspective
			4.5.3 National Perspective
				Negligence Offences
			4.5.4 Corporate Social Responsibility
			4.5.5 Recent Developments
		4.6 International Law
			Ogoni Nine-Case
			Yalisika Case
			4.6.1 International Criminal Law
				The Court Proceeding Against I.G. Farben
				Two Crimes Against Humanity
				China National Petroleum Corporation (CNPC)-Case
			4.6.2 Transnational Business Criminality
		4.7 Soft Law
			The UN Global Compact
			Lahmeyer International-Case
			The Oversight Board of Facebook and Instagram
		4.8 Human Rights Law
			Important Fundamental Rights in BCL
			Toxic Emissions (Ilva)-Case
		Literature
	5: Basic Knowledge on (Business) Criminal Law and Procedure
		5.1 Preliminary Remarks
			5.1.1 Conceptualising Criminal Law and Justice
			5.1.2 Interpreting Law
		5.2 Criminal Law
			5.2.1 Structure of Criminal Provisions
				5.2.1.1 Crimes, Offences, Misdemeanours and Contraventions
				5.2.1.2 Types of Offences
			5.2.2 No Punishment Without Law
				Coin-Machine-Case
				5.2.2.1 No Analogous Interpretation
					Hydrochloric Acid as a Weapon
				5.2.2.2 No Retroactivity
				5.2.2.3 No Customary Law
				5.2.2.4 Principle of Certainty
					German Law on Beef Labelling
			5.2.3 No Punishment Without Culpability
				5.2.3.1 Types of Subjective Elements
					Example: § 242 StGB-DE: Theft
				5.2.3.2 Criminal Capacity
					Minimum Ages of Criminal Responsibility:
				5.2.3.3 Awareness of the Unlawfulness of the Conduct
				5.2.3.4 Grounds of Excuses
					Example: Obstruction of Prosecution or Punishment (§ 258 StGB-DE)
			5.2.4 Theory of Elements of Crime
				5.2.4.1 Introduction
				5.2.4.2 Objective Elements
					Example: Embezzlement
					Example: Decisive Factor
					The Charges Against the US Tobacco Companies
					Embezzlement
				5.2.4.3 Subjective Elements
					Example: Damage to Property (§ 125 StGB-AT)
				5.2.4.4 Unlawfulness (Justification)
					Self-Defense-Case
					Foreign Trade and Payments Act (AWG) of Germany
					Danger to the Workplace-Case
					Bilge de-oilers-Case
				5.2.4.5 Culpability
			5.2.5 Attempt and Preparation
				Example: In the Process of Robbing a Bank
				Example: Mere Preparation
				5.2.5.1 Criminal Liability of the Attempt
				5.2.5.2 Withdrawal from the Attempt
			5.2.6 Perpetration and Participation
				Tripartite System vs. Unitary Model
				5.2.6.1 Perpetrator
				5.2.6.2 Instigation
				5.2.6.3 Aiding and Abetting
			5.2.7 Commission and Omission
			5.2.8 Cumulative Charges and Convictions
			5.2.9 Criminal Sanctions for Individuals and Amount of Penalties
			5.2.10 Statute of Limitations
				Example: Asbestos Poisoning
			5.2.11 Criminal Jurisdiction
				Fire in Factory-Case
				Example: Bribery Offences
		5.3 Criminal Procedure
			5.3.1 Principles of Criminal Procedure
				5.3.1.1 Judge and Prosecutor
				5.3.1.2 Defendant and Defence Counsel
				5.3.1.3 Procedure
			5.3.2 The Course of the Criminal Proceeding
				5.3.2.1 Preliminary Investigation
					Bernie Ecclestone-Case
				5.3.2.2 Main Procedure
				5.3.2.3 Legal Remedies
			5.3.3 Reporting an Offence: Right or Obligation?
			5.3.4 Rights of the Accused Person
			5.3.5 Rights of the Witness
		Literature
	6: Criminal Liability Concepts for Entrepreneurs and Companies
		6.1 Preliminary Remarks
		6.2 Perspective of the Individual
			6.2.1 Collective Crime and Individual Responsibility
				Controlling the Offence
				Perpetration by Means
			6.2.2 Representative Liability
				Sources of Law
			6.2.3 Delegation of Duties
				6.2.3.1 Types of Delegation
				6.2.3.2 Limits of Delegation
				6.2.3.3 Delegable Tasks
					Examples of Non-delegable Duties Expressly Provided for by Law
				6.2.3.4 Performing the Delegation
			6.2.4 Liability of the Superior and Guarantor Status
				The Compliance Officer as Guarantor
				Basic Responsibilities of a Superior
				Basic Limits of Liability for a Superior
			6.2.5 Organisational Negligence
				6.2.5.1 Essentials on Due Diligence
					Cura in Custodiendo
					Cornerstones of Corporate Due Diligence, As Shown in Fig. 6.1:
				6.2.5.2 Addressees of Supervisory Duties and Due Diligence
					Diesel Emissions Scandal: Duty of Care
				6.2.5.3 Implementation Strategies (Preview)
		6.3 Perspective of the Company
			6.3.1 Criminal Liability Models
				6.3.1.1 Switzerland (2003)
					Unknown Driver-Case
					Alstom Network Schweiz AG-Case
				6.3.1.2 Austria (2006)
				6.3.1.3 Liechtenstein (2011)
				6.3.1.4 Germany (2021)
			6.3.2 Sanctions Against Companies
				6.3.2.1 Monetary Sanctions
				6.3.2.2 Confiscation and Seizures
				6.3.2.3 Interdictions and Other Sanctions
		6.4 Professional Conduct and Criminal Liability
		Literature
Part III
	7: Operational Risks
		7.1 Preliminary Remarks
		7.2 Fraud
			Sources of Law
			7.2.1 Elements of the Crime
				Special Feature of Switzerland (Art. 146 StGB-CH):
			7.2.2 General and Specific Cases of Fraud
		7.3 Embezzlement
			Sources of Law
			7.3.1 Elements of the Crime
				Duty of Care Related to Assets of Another Person
			7.3.2 Flexible Applicability
				Siemens Enel-Case
			7.3.3 Black Funds
		7.4 Corruption
			Sources of Law
			7.4.1 Elements of the Crimes
				7.4.1.1 Accepting Benefits
				7.4.1.2 Taking Bribes
				7.4.1.3 Granting Benefits
				7.4.1.4 Giving Bribes
				7.4.1.5 Other Offences (Selection)
			7.4.2 Immoral or Unlawful?
				Lockheed Aircraft Corp.-Case
			7.4.3 Risk Management
			7.4.4 Thematic Boundaries
				7.4.4.1 Accepting Gifts
					Differing Guidelines in Large Companies
				7.4.4.2 Sponsorship
				7.4.4.3 Lobbying
		7.5 Money Laundering
			Sources of Law
			7.5.1 Elements of the Crime
			7.5.2 How Does Money Laundering Work?
			7.5.3 Trends in Legislation
			7.5.4 Anti-Money Laundering Strategies
				Suspicions and Suspicious Facts
		7.6 Cybercrimes
			Sources of Law
			7.6.1 Shaping the Crime Context
			7.6.2 Typology
			7.6.3 Damage to Electronic Data
			7.6.4 Fraudulent Misuse of Data Processing
			7.6.5 Unlawful Use of a Computer System
			7.6.6 EU Data Protection Law (GDPR)
		7.7 Capital Market-Related Offences
			Sources of Law
			7.7.1 Shaping the Crime Context
			7.7.2 Exploitation of Insider Information
			7.7.3 Price Manipulation
		7.8 Competition Offences
			Sources of Law
			7.8.1 Shaping the Crime Context
			7.8.2 Criminal Relevant Advertising
				7.8.2.1 Misleading Advertising (Para. 1)
				7.8.2.2 Criminal Progressive Customer Advertising (Para. 2)
			7.8.3 Bribery in Commercial Practice
		7.9 Cartel Offences
			Sources of Law
			7.9.1 Shaping the Crime Context
			7.9.2 Competition Restricting Agreements
			7.9.3 Abuse of a Dominant Position
		7.10 Accounting Offences
			Sources of Law
			7.10.1 Shaping the Crime Context
				FlowTex-Case
			7.10.2 Trends in Legislation
				Wirecard-Case
			7.10.3 Untenable Representation of Fundamental Information Concerning Certain Corporations
			7.10.4 Untenable Accounts of Auditors of Certain Corporations
		7.11 Insolvency Offences
			Sources of Law
			7.11.1 Shaping the Crime Context
			7.11.2 Delaying the Commencement of Insolvency Proceedings
			7.11.3 Other Offences
		7.12 Secrecy Protection
			Sources of Law
			7.12.1 Shaping the Crime Context
				Illegal Secrets
			7.12.2 Breach of Trade Secrecy
			7.12.3 Industrial Espionage
			7.12.4 Whistleblowing
		Literature
	8: Product and Service Risks
		8.1 Criminal Product Liability
			Bus-Case
			Glycol Wine Scandal of 1985
			Coburg Meat-Case
			Monza Steel-Case
			Ice Rink-Case
			8.1.1 Questions on Causality and Negligence
				Contergan-Case
				Leather Spray-Case
				Spanish Oil-Case
			8.1.2 Criminal Food Law
		8.2 AI Product and Service Risks
		8.3 Collective Board Decisions
			Majority Decisions
			8.3.1 One-Vote Majority
				Variant 2
			8.3.2 Majority of More than One Vote
				Variant 3
			8.3.3 Abstention from Voting
		8.4 Environment, Business and (Criminal) Law
			Major Fire at Schweizerhalle-Case
			8.4.1 Trends in Legislation
			8.4.2 Water Pollution
				Sources of Law
				Germany: ``Without Authorisation´´
			8.4.3 Illegal Handling of Waste
				Sources of Law
				Trafigura-Case
				Example: Asbestos
		Literature
	9: Logistical Risks
		9.1 Road Traffic Liability
		9.2 Transport Industry Liability
			Semi-Trailer-Case
		9.3 Supply Chain Risks
			Ever Given-Case
			9.3.1 Current Trends in Legislation
			9.3.2 Concerns Related to These Legislative Trends
		9.4 Self-Driving Vehicles
			Six Categories of Automated Driving
			9.4.1 Current Trends in Legislation
				California
				Autopilot Requires Driver´s Full Attention
				Autopilot Relies on Driver´s Control
			9.4.2 Questions of Responsibility
		Literature
Part IV
	10: Compliance
		10.1 Introduction
		10.2 Terminology
			10.2.1 Compliance and Business Organisation
			10.2.2 Legal Background
				Compliance Management Structure: Defining Features
		10.3 History of Compliance
			10.3.1 The United States of America
				Evaluation: Central Issues
			10.3.2 The United Kingdom
				Cornerstones of Compliance Measures According to the Guidelines of the UK Department of Justice
			10.3.3 International Developments
		10.4 Aims and Effects
			10.4.1 Prevention of Crime
				Earthquake-Case
			10.4.2 Avoiding Criminal Liability
			10.4.3 When and Why Do Businesses Deal with Compliance?
			10.4.4 Creating a Compliance Culture
				What Are the Five Major Sins of Compliance?
		10.5 Compliance Risks
			10.5.1 What Is Risk?
				Top 12 Compliance Risks
			10.5.2 Identification of Risks
				Risks According to Their Causation
			10.5.3 Dealing with Risks
				A Risk Strategy Can Be Built Like This
		10.6 Essentials on Compliance Management
			10.6.1 Distribution of Competences
				Organisation and Delegation of Compliance Related Tasks
			10.6.2 Compliance Programs and Measures
				Written Rules of Conduct
				Managing Compliance Related Documents
			10.6.3 Communication
			10.6.4 Monitoring
			10.6.5 Documentation
		10.7 Two Final Examples
			10.7.1 Compliance for Small Businesses and Start-Ups: The Hamburg Model
			10.7.2 Compliance for Large Companies: The Siemens Model
				10.7.2.1 Commitment from the Top and from the Middle
				10.7.2.2 Organisation
				10.7.2.3 Prevent
				10.7.2.4 Detect
				10.7.2.5 Response
		Literature
	11: Internal Investigations
		11.1 Introduction
			Zero Tolerance Policy
		11.2 Admissibility
		11.3 Terminology
		11.4 Limits of Internal Investigations and Legal Background
			11.4.1 Civil Law
			11.4.2 Labour Law
				11.4.2.1 Individual Perspective
					Sensitivity in Reporting
				11.4.2.2 Collective Perspective
			11.4.3 Data Protection Law
			11.4.4 Fundamental Rights
				Lüth Judgement 1958
		11.5 Course of Internal Investigations (Overview)
			11.5.1 Phase 1
				Questions that Need to Be Answered When Defining the Investigation Strategy
				The Objectives of Internal Investigations Are:
				Siemens Scandal-Case
			11.5.2 Phase 2
			11.5.3 Phase 3
		11.6 Interviews: Interrogation of Employees
		11.7 Inspection of Data Files and E-Mails
		11.8 Video Surveillance
		11.9 Litigation-PR
			Thomas Middelhoff-Case
			Litigation-PR Should
		11.10 Practical Examples
			11.10.1 VW Diesel Scandal
			11.10.2 FIFA Scandal
				11.10.2.1 Internal Investigations
				11.10.2.2 External Investigations
		Literature
Index