German Entrepreneur Jailed for Massive Wage Fraud and Social Security Evasion
A 55-year-old entrepreneur from the Altötting area has been jailed for four years and six months after running a large-scale wage fraud and tax evasion scheme. Xollan 'Xola' Jerjes, owner of the now-defunct XJ Reinigungsservice GmbH in Munich, was convicted by the 7th Criminal Senate of the Munich II Regional Court on 7 January 2026 for undeclared work, withholding wages, and evading taxes over several years.
Jerjes operated his cleaning business while systematically failing to register over 100 employees with social insurance. Instead, he paid their wages in cash under the table. This illegal practice spanned five years, resulting in a total loss of €851,884.36 to social insurance providers.
Customs investigators eventually uncovered the ongoing fraud, which led to Jerjes’ arrest in Turkey. He was later extradited to Germany to face trial. This was not his first offence—he had previously been convicted for similar crimes and had evaded custody by fleeing abroad. The court also sentenced Jerjes’ then-partner, who was nominally in charge of the company, to two years’ imprisonment (suspended) and a fine for her involvement in the scheme. The case revealed how the entrepreneur’s actions created unfair competition, undercutting law-abiding businesses while depriving the state of tax revenue and social security contributions.
The conviction brings an end to a long-running fraud operation that harmed both workers and the public purse. Jerjes’ sentence reflects the severity of his repeated offences, which included wage theft, tax evasion, and exploitation of employees. The now-insolvent company leaves behind a trail of financial damage and unpaid contributions.
