THE USE OF SUBSIDIES AS AN ARTIFICIAL MEANS OF MANIPULATING NATURAL COMPETITION PRODUCES CRIMINAL ACTIVITY BECAUSE OF THE EASILY GAINED PROFITS AND THE GAPS IN LEGAL REGULATIONS WHICH CURB SUCH ACTIVITIES. INFORMATION TO DOCUMENT SUCH ACTIVITIES DERIVES FROM CRIMINAL BRIEFS OF GOVERNMENT AUTHORITIES ON 842 CRIMINAL CASES FROM 1960 TO 1970. TYPES OF AGRICULTURAL SUBSIDY FRAUD ARE ASSOCIATED WITH PARTICULAR PRODUCTS (EGGS, MILK, PORK, SUGAR, MEAT) AND WITH STRUCTURE AND INVESTMENTS SUCH AS ERADICATION OF CATTLE TUBERCULOSIS, LAND DRAINAGE, PROVISION OF DIESEL FUEL, INVESTMENT ASSISTANCE, LOW/INTEREST CREDIT, CLOSING OF UNNECESSARY GRAIN MILLS, USING SUCH TRICKS AS MULTIPLE SUBSIDIES, SUBSIDIES FOR NONEXISTENT PRODUCTS AND NONEXISTENT COSTS, AND USE OF TIME LIMITS AND LEGAL LOOPHOLES. OTHER FORMS OF ECONOMIC FRAUD INCLUDE MINING INDUSTRY SUBSIDIES FOR SCRAP METAL, SUBSIDIES IN THE TRANSPORTATION MARKET, PAYMENTS FOR PROMOTION OF REGIONAL ECONOMIES AND AID FOR EXPORTS AND DEVELOPING COUNTRIES. MISUSE OF SUBSIDIES ALSO OCCURS IN THE CULTURAL AREA (FILMS, SCHOOL BOOKS) AND IN THE SOCIAL AREA (RESIDENTIAL BUILDINGS AND FUNDS FOR CONSTRUCTION). SUBSIDY FRAUD IS COVERED BY GENERAL FRAUD PROVISIONS WHICH HOLD THAT PERSONAL PROPERTY IS TO BE PROTECTED AND THAT FRAUD ENTAILS PERSONAL PROPERTY DAMAGE CAUSED BY AN OFFENDER'S INTENTIONAL DECEPTION TO GAIN ILIICIT PROFITS. A SPECIAL SUBSIDY FRAUD DEFINITION SHOULD BE PROVIDED, HOWEVER, TO FREE SUBSIDY CASES FROM THE DOGMATIC REQUIREMENTS OF THE FRAUD DEFINITION AND FROM THE PRACTICAL NECESSITY OF CRIMINAL PROSECUTION. REVIEW OF THE ROLE OF SUBSIDIES AS A CRIME INDUCING FACTOR IN THE TOTAL ECONOMIC STRUCTURE IS ALSO NEEDED. IT IS RECOMMENDED THAT THE CRIMINAL CODE BE MODIFIED TO (1) PRESCRIBE UP TO 5-YEAR PRISON TERMS OR FINES FOR SUBSIDY SWINDLERS, (2) PROSECUTE INDIVIDUALS WHO FALSIFY APPLICATION INFORMATION REQUIRED FOR A SUBSIDY, (3) EXEMPT THOSE WHO VOLUNTARILY CORRECT MISINFORMATION ON SUBSIDY APPLICATIONS FROM PROSECUTION, AND (4) RECORD SUBSIDY ACTIONS AS CRIMINAL OFFENSES ONLY WHEN THIS IS STATED IN LEGAL DOCUMENTS PERTAINING TO THE SUBSIDY GRANT. AN APPENDIX WITH SUGGESTIONS FOR PREVENTION, A MAIN BIBLIOGRAPHY, AND SEPARATE BIBLIOGRAPHIES FOR EACH SUBSIDY TYPE, AND EXTENSIVE NOTES ARE SUPPLIED. --IN GERMAN. (KMD)