Freiburg Court Convicts Man for Exploiting Bulgarian Construction Workers in Sham Company Scheme
A major construction project in southern Freiburg came under scrutiny in 2016 after suspicions arose over the treatment of Bulgarian workers. Investigations revealed widespread irregularities, including unpaid wages and undeclared social security contributions. The case has now resulted in a suspended prison sentence for the man responsible.
The investigation began when authorities inspected a construction site in Freiburg and found 21 Bulgarian workers carrying out structural work. Their statements raised concerns, as none were registered with the social insurance system. Instead, they had been falsely listed as independent partners in a sham company structure.
All workers lived in construction trailers and shared lodgings, working exclusively on the same site—conditions that pointed to dependent employment. Language barriers meant many did not understand the contracts they had signed. The Freiburg Public Prosecutor's Office later filed charges for withholding wages and embezzling nearly €350,000 in social security contributions.
A 72-year-old Bulgarian man, who had set up the company in 2015, presented himself as its representative. He admitted to rotating workers through the sham partnership to avoid tax and social security obligations. The Freiburg Local Court sentenced him to a one-year suspended prison term with a two-year probation period.
This case is part of a broader trend. Over the past five years (2021–2025), German customs authorities uncovered around 1,200 similar cases of undeclared work and social security fraud in construction projects involving foreign workers. The most affected regions included North Rhine-Westphalia and Bavaria.
The court's ruling brings an end to a case that exposed systematic exploitation of foreign workers in the construction sector. Nearly €350,000 in unpaid contributions was lost, while the workers themselves remained unaware of their legal rights. The suspended sentence reflects the severity of the violations, though the broader issue of undeclared labour in the industry persists.
