The purpose of this work is to precisely define the procedures of conversion and privatization, and to review the court practice in the sphere of criminal liability of war profiteers. The work will be based on studying relevant literature, exploring various definitions of terms important for the quality of the work. The aim of the work is to make citizens and readers aware of the importance of the issue and the amount of financial resources that have been irretrievably lost. The work will also raise the question of the efficiency of both the legislative framework and the judiciary's actions in certain cases. There is still no unified definition of what war profiteering is. It can be said that this term expresses the abuse of a war situation, as well as the political and economic circumstances that result from war situations, in order to increase the economic power of an individual for the purpose of achieving unlawful financial gain for another person. The work covers the period of the Homeland War from 1991 to 1995. War profiteering is often associated with the procedures of conversion and privatization. Given that the primary goal after the independence of the Republic of Croatia was the transition from a communist planned economy to a market economy, it was necessary to ensure the transformation from state (social) ownership to private ownership, i.e., the procedures of conversion and privatization. The work will attempt to clarify the meaning of the terms conversion and privatization and the methods of their implementation in order to explain the modalities of the actual criminal activities. The work consists of six main sections. The first section will focus on the review of the legal regulations that preceded the implementation of criminal proceedings for war profiteering. It also covers constitutional and legal amendments aimed at enabling fair punishment of offenders, as well as the inconsistency of the war profiteering laws with one of the most important principles of the rule of law, which is the principle of the prohibition of retroactivity. The second section analyzes the issue of suspicious enrichment of individuals as a consequence of war profiteering. The third section deals with the modalities of illegal conversion and privatization. The fourth section will examine the position of the Constitutional Court in the Hypo Bank case regarding the statute of limitations on criminal prosecution contrary to the final court decision. The fifth section covers the examination of court practice. The work reviews several cases in which individuals, through illegal actions, gained significant financial benefits and caused damage to the country. It is important to note that the damage caused in the economic sector, as part of the total war damage amounting to around 65.3 billion DEM, is estimated at 10.1 billion DEM. As a consequence, numerous companies and societies went bankrupt or were liquidated, resulting in high unemployment.