Police detain nine in alleged undeclared-work network

Police have detained nine people and carried out 18 searches in four Austrian states as part of an investigation into an alleged network of organised undeclared work that caused an estimated €3.5 million in losses, ORF reported.

The searches took place on Tuesday in Styria, Vienna, Burgenland and Carinthia. The operation was led by the Economic and Corruption Prosecutor’s Office, with police and the Styria State Criminal Police Office involved. Tax investigators also played a significant role.

About 40 people are under investigation on suspicion of organised undeclared work, fraudulent social security registrations and serious commercial fraud. Investigators say the suspects set up at least 25 shell companies in the courier and small-transport sectors.

The companies allegedly appointed financially destitute foreign nationals as managers, in some cases using false identities. Workers were reportedly registered with low social security contribution bases but in fact worked full time for other companies.

Authorities estimate the total damage at at least €3.5 million. Further details have not been released for investigative reasons.