Restaurant Owner and Manager in Lörrach Convicted of Social Security Fraud

The owner of a restaurant offering exotic dishes and her manager in the town of Lörrach in Baden-Württemberg have been sentenced to suspended prison terms. The court found them guilty of the crime of failing to pay full social security contributions for their employees over several years. According to data collected by the Main Customs Office in Lörrach, employees at the establishment received lower wages than their employers declared over a period of 41 months. The difference between the actual and reported wages allowed the entrepreneurs to save and not pay into the social security system an amount estimated at 100 000 € — losses for social security funds. These contributions go, among others, to health insurance funds (Krankenkasse) and pension funds, and their absence means a reduction in future benefits for employees. The case was detected by controllers from the customs office, who then passed it on to law enforcement authorities. The trial ended with convictions, although the exact sentence and probation period were not disclosed in available press reports. The German system for monitoring work and social security is decentralized and involves various institutions, including customs offices, which have the authority to verify payroll documentation. In Germany, the fight against illegal employment and social security fraud has been ongoing for decades, intensifying particularly after the expansion of the European Union in 2004 and 2007, which increased labor mobility. In 2015, the Act to Combat Illegal Employment and Social Security Fraud (Schwarzarbeitsbekämpfungsgesetz) was introduced, strengthening the powers of control authorities, including customs offices. It is worth noting that all three information sources – Die Welt, stern.de, and n-tv – report the same, consistent version of events, indicating reliance on an official press release from the Main Customs Office in Lörrach. Under German law, criminal consequences for this type of offense can include not only financial penalties but also imprisonment, especially given the significant and prolonged scale of the fraud. The court, in issuing a suspended sentence, likely considered mitigating circumstances, such as admission of guilt or repayment of the concealed amounts. This case is an example of routine control activities that regularly uncover irregularities, particularly in sectors with high employment of temporary or seasonal workers, which often includes the hospitality industry.