GERMANY’s FIU has showcased its success in helping achieve jail terms of more than 14 years for managers and employees of a construction firm involved in social security fraud.
Customs officials in in Münster used information from the Financial Intelligence Unit (FIU) and to uncover the €3.3M swindle.
The case was prompted by information from the FIU which led to extensive investigations by the main customs office in close cooperation with the public prosecutor’s office and the tax investigation department in Münster.
In autumn 2021, the evidence against the convicts which was amassed over three years led to a series of arrests. The undercover probe became public when one of the suspects planned to flee abroad.
“Thanks to the telecommunications surveillance and the previous observations, we knew where the accused were,” an investigator said.
Investigators said the fraudsters registered companies and cars friends of families, including a separated wife.
The gang used so-called cover invoices, i.e. bogus invoices for services never rendered, to conceal the fraud.
The investigation uncovered:
- Foundation of 5 companies
- Numerous accounts at a total of 50 banks as well as irregular account movements
- conspicuous hourly billing
“The discovery of an imitation firearm, which was converted into a viable weapon, makes it clear what kind of clientele the officers have to expect during such operations,” one of the investigating customs officers said.
Officers also revealed where they found the gun. “A colleague with a good instinct had actually brought the weapon to light by reaching into a noodle package,” said the investigator. They also discovered a stun gun placed in the access area of the front door.
This week the Münster Regional Court sentenced four men to a total of more than 14 years in prison for years of crimes in the construction industry. The entrepreneurs and employees of several construction companies have evaded millions of dollars in social security contributions and taxes.
Today FIU chief Daniel Thelesklaf said: “Thanks to the staff of the FIU who contributed to this success.”
“Three of the accused will now spend the next few years behind bars. The custodial sentence of the fourth convicted person is suspended. All four had previously spent almost two years in pre-trial detention,” said a spokesman.
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