Builder Sentenced for Aiding €1M Wage Evasion Scheme
A builder from Regensburg has been sentenced to a ten-month prison term, suspended, for aiding and abetting the evasion and misappropriation of wages in 43 cases. The case highlights a scheme involving the misuse of self-employed status to avoid social security contributions, harming social security funds and giving unfair advantages to dishonest businesses.
The case began with a tip from the Regensburg Trade Office about suspicious business registrations at the defendant's address. Investigations by the Financial Control Black Work (FKS) of the Regensburg Customs Office revealed that the registrations were initiated by the builder, with workers paid hourly rather than based on company profits. Between 2017 and 2021, the builder evaded social security contributions totaling €1,006,288.03. The workers, despite being instructed and meeting conditions for a normal employment relationship, were falsely classified as self-employed. Leading Government Director René Matschke, head of the Regensburg Customs Office, stated that such practices harm social security funds and give unfair advantages to dishonest businesses. The defendant confessed to the crime in court, expressing remorse.
The builder was sentenced to a ten-month suspended prison term. The customs office has stated that it will continue to pursue such forms of black work, ensuring that businesses operate within the law and contribute fairly to social security funds.
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