Businessman Convicted for €20k Wage Fraud Using 'Sham Self-Employed' Workers
A business owner from Landkreis Börde in the construction sector has been convicted for wage fraud, resulting in a social security loss of over €20,000 over a year. The 52-year-old defendant admitted to withholding wages in 19 cases and misappropriating funds.
An audit of the business owner's records revealed a scheme involving 'sham self-employed' workers. These individuals were falsely registered as independent contractors but were actually dependent employees. This meant they were not registered for social security, leading to unpaid health insurance contributions.
The defendant was fined a total of 50 daily rates of €35, amounting to €1,750. No service contracts were concluded with the sham self-employed workers, further indicating the fraudulent nature of the arrangement.
The judgment against the business owner has been legally binding since December 12, 2024. The case serves as a reminder of the serious consequences of wage fraud and the importance of proper registration and payment of social security contributions.
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