Entrepreneur Arrested for €170k Social Security, Wage Fraud
A 65-year-old construction entrepreneur from the Rhein-Neckar district was arrested on 02.09.2025. The entrepreneur is suspected of serious financial offenses, including withholding social security contributions and making false statements to the holiday and wage compensation fund (ULAK).
The entrepreneur's arrest follows an investigation by the Financial Control Black Work of the Customs. They discovered that the entrepreneur had employed workers without paying their social security contributions from 2020 to the end of 2023. Additionally, the entrepreneur is accused of providing false and incomplete wage statements to the ULAK.
The total damage caused by these actions amounts to approximately 98,600 euros in unpaid social security contributions and approximately 71,600 euros not paid to the ULAK. The Customs is currently investigating 24 cases of withholding and misappropriation of wages and 40 cases of fraudulent business practices against the entrepreneur.
This is not the first time the entrepreneur has been investigated for similar offenses. From 2016 to 2021, they were probed for comparable actions, resulting in damages of over 219,000 euros. Further investigations into these past incidents are ongoing.
The entrepreneur was arrested and taken to a detention facility after an arrest warrant was issued by the investigating judge of the Heidelberg Local Court. The warrant was executed by the police authorities, involving the police and the public prosecutor's office Mannheim. The entrepreneur is considered a flight risk and may face further charges if found guilty.
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