Regensburg Contractor Sentenced for €1M Wage Evasion
A Regensburg construction contractor has been sentenced for aiding and abetting wage evasion and misappropriation. The case, investigated by leading government director René Matschke, involved €1,006,288.03 in unpaid social security contributions over four years.
The case began with a tip from the Regensburg Business Office about suspicious business registrations at the contractor's address. All registrations listed an activity in drywall construction and claimed to be partners in various civil law partnerships (GbR). Investigations revealed that the registrations were initiated by the entrepreneur, and the workers were paid hourly, fulfilling the conditions for a normal employment relationship, making them employees, not self-employed.
Director Matschke, head of the Regensburg Customs Office, stated that such practices harm social security funds and give dishonest businesses an unfair advantage. The contractor was sentenced to a ten-month prison sentence, suspended, for aiding and abetting the evasion and misappropriation of wages in 43 cases.
The contractor pleaded guilty and showed remorse. The court's decision sends a clear message that such actions will not be tolerated. The evaded social security contributions totaled €1,006,288.03 between 2017 and 2021.
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