What does Hungarian law say?

The offence (Section 376 of the Hungarian Criminal Code) is committed by a person entrusted with managing someone else’s assets who causes a financial loss by breaching their duties. A business decision made in good faith that later turned out to be a bad one is not a crime in itself.

What penalty can you face?

• Small loss: up to 2 years
• Larger loss: up to 3 years
• Substantial loss: 1 to 5 years
• Particularly large loss: 2 to 8 years
• Particularly substantial loss: 5 to 10 years

Value thresholds (Section 459 of the Hungarian Criminal Code): petty offence up to HUF 50,000; small value HUF 50,001–500,000; larger value HUF 500,001–5,000,000; substantial value HUF 5–50 million; particularly large value HUF 50–500 million; particularly substantial value over HUF 500 million. Up to a loss of HUF 50,000 it is a petty offence, but the losses from offences committed by the same person within one year and tried together are added up (Section 462 (2) c) and (4)). The loss also includes lost profit. If the breach of duty was not intentional but negligent, it may be negligent mismanagement (hanyag kezelés, Section 377), which is not a criminal offence if the loss does not exceed HUF 100,000. For offences against life, physical integrity and health, traffic offences and offences against property (misdemeanours, or felonies punishable by up to 3 years), admitting the offence before indictment and compensating the victim through mediation accepted by the victim can lead to no punishment at all; for offences punishable by up to 5 years the sentence can be reduced without limit (Section 29). This does not apply, among others, to repeat offenders, offences committed in a criminal organisation, or where the offence caused death.

What should you do now?

• Do not make a statement without a lawyer.
• Ask for an interpreter in your own language.
• Ask for copies of the official records and call us before the interview.
• If a family member has been detained in Hungary, find out where they are being held and call us immediately.

How we help

• We explain every document and every step of the procedure in English
• Demonstrating good faith and the limits of your mandate
• Checking the accounting expert opinion
• Coordinating the criminal and civil proceedings
• Representation during the investigation and in court

Frequently asked questions

Is a wrong business decision a crime?

No, if it was made in good faith, within the limits of your mandate and in the company’s interest.

How is it different from embezzlement?

Embezzlement means appropriating an entrusted item; breach of trust means causing a loss by breaching management duties.

I live abroad. Who will try my case?

An offence committed in Hungary is dealt with by the Hungarian authorities. We can represent you and keep you informed in English.

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Call us now, day or night

Dr. László-Tamás Benő: +36 70 379 0245

Office: Falk Miksa utca 4, mezzanine 4, 1055 Budapest (by appointment only)

See also: Detained or arrested in Hungary · Hungarian version