Two Arrests Made During Raids for Black Market Work in Construction Industry - Major Operation Uncovers Black Market Labor Ring in Construction Industry
A major operation has uncovered a suspected black market labor ring in the construction industry, spanning Hesse, Rhineland-Palatinate, Berlin, and Frankfurt am Main. The investigation, led by the Public Prosecutor's Office and the Main Customs Office, resulted in searches at 23 locations, including two construction sites, involving nearly 300 officers. Two arrests and two asset seizures were made.
The probe focused on suspects running service companies that allegedly sold fake invoices to construction firms. These invoices were used to conceal the true nature of transactions, enabling the suspects to evade taxes and social security contributions. The investigation revealed that employees were often paid in cash, with cover invoices totaling around €3 million used to launder the payments.
The operation targeted a group of 11 suspects, six men, and five women, accused of evading and misappropriating social security contributions, tax evasion, and fraud. The suspected scam resulted in social security authorities suffering a loss of €1.4 million. Additionally, other suspects were found to operate a construction company providing services worth around €5 million nationwide.
The investigation is ongoing, with the Public Prosecutor's Office and the Main Customs Office continuing to unravel the complex web of suspected fraud and tax evasion. The operation highlights the determination of authorities to crack down on black market labor practices in the construction industry.
