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Germany Launches Major Raids Targeting Construction Industry Wage Fraud

Nearly 400 customs officers searched 36 premises across multiple states, marking the start of an open investigation into suspected €15 million in damages from illegal labor practices.

Overview

  • Authorities executed synchronized raids in five German states, focusing on construction companies accused of systematic wage fraud and tax evasion.
  • Two women and five men were arrested in Cologne, Leverkusen, and Bergisch-Gladbach, with 13 individuals under investigation for operating fraudulent businesses.
  • Investigators allege the companies failed to register employees for social security and paid wages in cash, causing an estimated €15 million in damages.
  • The operation follows extensive undercover investigations and is now in its open phase, involving IT-forensics teams and cash-sniffer dogs to analyze seized evidence.
  • Officials are pursuing charges of organized wage embezzlement and tax evasion as part of a broader national crackdown on illegal employment practices.