Berlin Businessman Ordered to Pay €1.2M for Social Security Fraud
A Berlin businessman has been ordered to pay 1.2 million EUR in damages after failing to fully pay social security contributions for his employees over a period of nearly five years. The businessman, who operated in the cleaning and construction industries, will also have the amount confiscated.
The businessman, who was not named, operated several companies and did not pay the full social security contributions for his workers between September 2016 and February 2021. The total amount owed was 1.2 million EUR. The businessman also used fictitious invoices created by so-called service companies to conceal the black work and avoid paying wages in 46 cases.
The businessman was sentenced to two years' imprisonment, suspended, for his actions. The Hauptzollamt, the German customs authority, handled the case. Although no press spokesperson for the Hauptzollamt Frankfurt was explicitly named, Jens Ahland serves as the press spokesperson for the Hauptzollamt Köln.
The businessman must now pay the 1.2 million EUR in damages, with the amount to be confiscated. The sentence serves as a reminder of the importance of adhering to labor laws and paying social security contributions for employees.
