Regensburg Contractor Sentenced for Aiding Social Security Evasion
A construction contractor from Regensburg has been sentenced for aiding and abetting social security contribution evasion and wage misappropriation. The entrepreneur, who remains unnamed, pleaded guilty and expressed remorse.
The case began with a tip from the Regensburg Trade Office about suspicious business registrations at the entrepreneur's address. Investigations revealed that the entrepreneur had registered workers as self-employed, paying them hourly, to avoid social security contributions. However, the registrations met the conditions for regular employment relationships.
Between 2017 and 2021, the entrepreneur evaded social security contributions totaling €1,006,288.03. Leading Government Director René Matschke, head of the Regensburg Customs Office, commented that the case exposes how some entrepreneurs attempt to circumvent social security obligations through alleged self-employed workers.
The entrepreneur was sentenced to a ten-month suspended prison term for aiding and abetting the evasion and misappropriation of wages in 43 cases. The court's decision sends a strong message that such practices will not be tolerated.
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