Seven Charged in €25M Tax Fraud Using Fake Invoices and Sham Firms
Seven people face charges in Koblenz for running a large-scale tax evasion scheme involving fake companies. The group allegedly intuited over €25 million in social contributions by issuing sham invoices. All defendants remain in custody while the investigation continues.
The scheme centred on concealing undeclared employment through fictitious invoices. Five of the accused are suspected of selling these fake documents, enabling businesses to underreport payroll costs. The cash saved was then used to pay workers off the books, while the invoices made the payroll appear smaller.
The gang set up multiple sham companies that carried out no real business. They kept a cut of the money before returning the rest in cash to those who received the invoices. Two of the defendants also ran their own logistics firms, allegedly dodging an extra €8.5 million in social contributions using the same method.
A separate case has been opened against an eighth person, who was under 21 when the offences took place. The Koblenz prosecutor’s office has not released the names of the five individuals accused of aiding tax evasion. However, two Berlin entrepreneurs, aged 31 and 39, are suspected of buying fake invoices as part of a wider investigation involving 25 suspects.
The total financial damage from the scheme exceeds €25 million. The defendants remain in pretrial detention while authorities continue their investigation. If convicted, they could face significant penalties for fraud and tax evasion.
