Major Tax Evasion Bust: 2 Arrested in Construction Industry Scheme
Authorities in Hessen, Rheinland-Pfalz, and Berlin have dismantled an organized network involved in tax evasion and embezzlement of social security contributions in the construction industry. The operation resulted in the arrest of two men, aged 40 and 41, and the search of multiple premises and construction sites.
The investigation, involving around 290 officers, targeted a construction company that provided services worth approximately five million euros. It's alleged that the company paid out wages off the books, using fake invoices as a basis, totaling around three million euros. This illegal practice, along with the embezzlement of social security contributions, has caused damages estimated at around 1.4 million euros to social security funds.
The operation led to the execution of arrest warrants and the search of 23 residential and commercial premises, along with two construction sites. Eleven suspects, including six men and five women, are accused of various roles in the scheme. Some operated service companies selling 'cover' invoices to construction firms, while others were involved in the construction company with black paid employees.
The suspects are being investigated for tax fraud and embezzlement of social security contributions. The total estimated damage to social security funds is around 1.4 million euros. The operation is part of ongoing efforts to combat organized undeclared work in the construction industry across the regions of Hessen, Rheinland-Pfalz, and Berlin.
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