German Telecom Owner Fined €18,000 for Wage Fraud and Social Security Evasion
A Nuremberg district court has issued a final ruling against the owner of a Middle Franconia telecom services company. The businesswoman was fined €18,000 for withholding wages and evading social security contributions over five years. The case involved multiple employees and a complex fraud scheme.
The court found the owner guilty of 193 counts of wage withholding and embezzlement. She had failed to register several workers for social security while managing the telecom firm. To hide the fraud, she falsely claimed some employees held extra part-time mini-jobs at the same company.
As managing director of a second business, she also engaged in 'wage splitting' to avoid paying contributions. This tactic allowed her to underreport earnings and reduce obligations. Social security providers lost around €59,000 due to the unpaid contributions.
The defendant received a penalty of 360 daily rates, each set at €50. The court's decision is now legally binding, closing the case.
The ruling confirms the €18,000 fine and ends the legal process. The fraud affected multiple employees and cost social security providers nearly €60,000. No further details on similar cases in the region have been made public.
