Unlawful activities in construction industry: Entrepreneurs from Halle (Saale) receive 3-years-and-8-months prison sentence

A 51-year-old entrepreneur from Halle (Saale) has been sentenced to three years and eight months in prison by the Regional Court of Halle. The conviction follows extensive investigations by the Financial Control of Black Work Halle (Saale) of the Main Customs Office Magdeburg.

The investigations revealed that the entrepreneur had been employing workers whose wages were paid in cash and not registered for social security from March 2017 to January 2020. As a result, the court found the entrepreneur guilty of committing a total of 33 acts of withholding and embezzling wages, and withholding contributions to social security amounting to approximately 405,000 euros during the same period.

The entrepreneur, who has dual Serbian and Bosnian citizenship, had previously fled abroad to avoid proceedings. He was provisionally arrested in Montenegro based on a warrant and served approximately three months of imprisonment there before being extradited.

It is important to note that the defendant made a full confession during the main hearing. The convicted person was not the owner of the business, but his brother, who was fully authorized to run the business of the construction company.

For further questions, the Main Customs Office Magdeburg can be contacted at www.zoll.de or via email at [email protected]. Sebastian Schultz is a contact person at the Main Customs Office Magdeburg, and his telephone number is 0391 / 5074 - 1206.

It is worth noting that this is not an isolated incident. The illegal practice of paying wages in cash and not registering them for social security is a serious issue that undermines fair competition and deprives workers of their rights. It is essential that such practices are investigated and punished to ensure a level playing field for all businesses and to protect the rights of workers.

The verdict in the case is final and legally binding as of 30.04.2025. The search results do not contain information about the managing director of the construction company involved in the illegal wage payment investigations by the Hauptzollamt Magdeburg.

This case serves as a reminder that the law applies to everyone, regardless of their position or status. Businesses that engage in such practices will be investigated, and those found guilty will be held accountable for their actions. It is important that all businesses operate within the law and treat their employees fairly and honestly.