Regensburg Builder Sentenced for €1M Social Security Fraud
A construction entrepreneur from Regensburg has been sentenced to a suspended prison term of ten months for evading social security contributions totaling €1,062,288.03 between 2017 and 2021. The case, investigated by the Regensburg Main Customs Office's Financial Control, involved the use of alleged self-employed workers to avoid contributions.
The defendant, a building contractor, was found guilty of illegal employment practices. He had registered workers as self-employed, despite them receiving hourly wages and specific instructions, indicating an employment relationship. This allowed him to evade social security contributions, giving him an unfair advantage over honest businesses.
The case was brought to light after a tip from the Regensburg Trade Office about suspicious business registrations at the defendant's address. The defendant pleaded guilty, expressing remorse for his actions. Leading Government Director René Matschke, head of the Regensburg Main Customs Office, highlighted that such practices harm social security funds and create an uneven playing field for businesses.
The defendant's actions have resulted in a significant loss to social security funds. His suspended prison sentence serves as a warning to others who may consider similar practices. The case underscores the importance of honest business practices and the role of authorities in maintaining a fair business environment.
