The Minister of Business announces strengthened measures against straw men and economic crime. The government plans to intensify efforts against straw men and increase the punishment for masterminds involved in economic crime. This is stated in a press release from the Ministry of Business.
Minister of Business Morten Bødskov (Social Democrats) states in the press release: “We must be tough on criminals and straw men. Therefore, we are looking into whether the punishment for masterminds and advisors should be increased.” The decision to focus more on this issue is partially inspired by the documentary “The Black Swan,” which has shed light on how masterminds and advisors in reputable positions can be behind economic crime, while vulnerable straw men are often used as figurehead directors.
The Danish Business Authority already has a mechanism in place to monitor the use of straw men as fake directors and employees. According to the ministry, the authority rejected over 1000 potential straw men last year. “We have controls in place for straw men. They are effective and catch hundreds of criminals before they even get started. But the net needs to be tightened even further,” adds Morten Bødskov.
The minister also emphasizes the need for better sharing of witness statements and data between authorities to further strengthen control. Although the government has not yet presented a concrete proposal on how to increase the punishment for masterminds and advisors, the message from the Minister of Business is an important step in that direction.
This announcement comes in the wake of Minister of Justice Peter Hummelgaard’s announcement of an investigation into the controversial self-appointment method in bankruptcies. This practice allows a bankrupt company to choose its own trustee, leading to suspicions that trustees may manipulate the bankruptcy estate in favor of the bankrupt company.
Both ministers’ statements come ahead of a parliamentary hearing where the government will present how they plan to politically respond to the revelations that have emerged in the documentary “The Black Swan.”