Authorities Dismantle Construction Crime Network, €1.4M Social Security Loss
Authorities have dismantled an organized crime network operating in the construction industry, resulting in significant losses to social security. The Public Prosecutor's Office in Frankfurt am Main, along with regional investigators, have been conducting ongoing investigations.
The network, involving 11 suspects aged between 30 and 48, included two men aged 40 and 41 who ran service companies. These companies created and sold cover invoices to construction firms, amounting to around €3 million. This illicit activity was used to fund illegal wages.
The suspects are accused of various crimes, including withholding social security contributions, tax evasion, and fraud. Two men, aged 40 and 41, have been arrested, and property arrests have been enforced against two construction companies. The total damage caused to social security is estimated at €1.4 million.
Investigations revealed that another suspect, operating a construction company, provided services worth approximately €5 million. This suspect is believed to have made large-scale illegal wage payments. A total of 23 residential and business premises, including two construction sites, were searched across Hesse, Rhineland-Palatinate, and Berlin.
The dismantling of this network has exposed an illegal labor scheme in the construction industry. Authorities continue to investigate the full extent of the crimes and the impact on social security. No further details about specific individuals or companies suspected of paying illegal wages have been released at this time.
