Employers Sentenced for €3.8M Social Security Fraud
Two employers in the construction industry have been found guilty of evading social security contributions, resulting in a significant financial loss. The case involved fake invoices totaling €4.2 million, with a financial damage of over €3.8 million. The defendants received prison sentences and fines.
The Main Customs Office Augsburg, led by Hans-Henning Kühne as of 2025, conducted investigations into suspected illegal work in the Kaufbeuren area. Their Financial Control of Illegal Work unit uncovered the scheme involving two employers who failed to register their employees for social security contributions.
One defendant was sentenced to five years in prison for their role in the crime. Another defendant received a suspended prison term of one year and ten months and a fine of 420 daily rates of €30, amounting to €12,600. This was due to a comprehensive confession, which likely helped reduce their sentence.
The sentencing serves as a reminder of the seriousness of evading social security contributions. The Main Customs Office Augsburg continues to protect the integrity of the system, with their Career Information Day on July 19, 2025, offering insights into the profession of a customs officer.
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