Michael S. Sentenced for Role in Wage Splitting Scheme
A man named Michael S. has been charged and sentenced for his role in aiding a security company in Regensburg in a systematic social security evasion scheme. The scheme, which ran from 2016 to 2021, aimed to avoid social security contributions.
The Regensburg Local Court fined Michael S. 2,400 euros for his part in the scheme. The Regensburg Public Prosecutor's Office had charged him with aiding and abetting wage withholding and misappropriation. The company, based in southern Bavaria, had been systematically dividing employees' salaries among colleagues to avoid the 450-euro limit and thus evade social security contributions.
In 2018 and 2019, one employee's overtime payments were distributed among 16 different colleagues. In some months, an employee's salary was divided among four different people to circumvent legal requirements. Michael S. pleaded guilty at the start of the trial, leading to a quicker resolution.
The head of the Regensburg Customs Office, Leitender Regierungsdirektor Matschke, stressed that such wage splitting practices harm the social security system and create an unfair competitive advantage. Michael S.'s sentencing serves as a reminder of the seriousness of such offenses.
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