German and Slovenian authorities, with the support of Eurojust, conducted a coordinated action today against the illegal trafficking and posting of foreign building labourers and tax evasion. During the action day, the three main suspects were arrested in Germany. Their I illegal activities deprived the German tax authorities of approximately EUR 12 million.
The alleged perpetrators had set up at least two Slovenian shell companies as subcontractors or service providers to facilitate the posting of Bosnian workers on German building sites, mainly in the Kassel area of Hesse. The Bosnian labourers were illegally trafficked to Germany with fake work visas and without paying social security contributions. The service companies were also used to issue fake invoices to avoid taxation and to pay the workers in cash.Investigations into the fraud were initiated in 2022 by the Public Prosecution Office (PPO) of Kassel in Germany. Eurojust enabled cooperation with the Slovenian authorities and organised two coordination meetings in 2024. The Agency also facilitated the sharing of information, the transmission and execution of European Investigation Orders, and the organisation of the joint action day.During this action day, over 300 German officers were deployed to conduct 21 searches in Germany (Hesse, Bremen and Munich) and Slovenia. German officials participated in the searches in Slovenia. Several bank accounts were frozen and computer equipment, mobile phones and three vehicles also seized. .The operations were carried out at the request of and by the following authorities:Germany: PPO Kassel; Head Office of Customs and Excise (Hauptzollamt) GiessenSlovenia: District State Prosecutor's Office in Ljubljana; Police Directorate Ljubljana, Criminal Police Division, Economic Crime Section
Brief
On April 25, 2024, authorities conducted a coordinated action against labor trafficking and tax evasion. The operation involved German and Slovenian authorities with Eurojust support, resulting in the arrest of three main suspects in Germany. Investigations initiated by the Public Prosecution Office (PPO) of Kassel in Germany in 2022 were facilitated by Eurojust's cooperation and information sharing, leading to searches in Germany and Slovenia, as well as the freezing of bank accounts and seizure of assets.
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Purpose
The coordinated action by German and Slovenian authorities, with the support of Eurojust, aimed to combat illegal trafficking and posting of foreign building laborers, as well as tax evasion. The objective was to apprehend those responsible for depriving the German tax authorities of approximately EUR 12 million through their illicit activities.
Effects on Industry
The action has significant implications for the construction industry in Germany, particularly in the Kassel area of Hesse, where Bosnian workers were illegally trafficked and employed. The operation highlights the need for stricter regulations and enforcement to prevent similar cases of exploitation and tax evasion. Additionally, the action demonstrates the importance of international cooperation among law enforcement agencies in combating cross-border crimes.
Relevant Stakeholders
The following stakeholders are affected by this coordinated action:
- German and Slovenian authorities: The success of the operation relies on the collaboration and coordination between these two countries’ law enforcement agencies.
- Bosnian laborers: Many workers were victims of human trafficking, with some being forced to work under false pretenses or without receiving proper compensation.
- German tax authorities: The estimated EUR 12 million in lost revenue due to tax evasion highlights the economic impact of such crimes on governments and taxpayers alike.
Next Steps
Given the success of this coordinated action, it is essential for:
- Law enforcement agencies: To continue sharing information and coordinating efforts across borders to combat similar cases of human trafficking and tax evasion.
- Construction industry stakeholders: To review their practices and ensure compliance with regulations to prevent exploitation and tax evasion.
- Governments: To strengthen laws and policies aimed at protecting workers’ rights and preventing cross-border crimes.
Any Other Relevant Information
The operation demonstrates the importance of international cooperation in addressing global challenges. It highlights the need for a unified approach among law enforcement agencies, governments, and industries to prevent and combat crimes that affect not only individuals but also economies as a whole.
