Bavarian Authorities Uncover Widespread Supermarket Fraud Scheme

Extensive Investigation Targets Shelf-Stocking Companies

Bavarian authorities have launched a comprehensive investigation into several independent supermarket shelf-stocking companies operating across the southern Bavarian region. The probe, which has been ongoing for several years, focuses on allegations of wage and tax evasion, as well as the smuggling of foreigners. More than 70 suspects are currently under investigation, with an estimated financial damage to public funds and social security institutions totaling at least 20 million Euros.

The Public Prosecutor's Office Munich I, in collaboration with Customs, Police, and the Tax Investigation Office, conducted search operations on October 7 and 9, 2025. These operations involved approximately 50 officers who searched various residential and business premises, including locations in Munich, Unterammergau, and Gaimersheim. During these searches, extensive documents and data storage devices were seized, and assets such as bank balances and real estate were secured.

Allegations of Wage and Tax Evasion, Foreigner Smuggling

The core of the allegations against the more than 70 suspects includes the withholding and embezzlement of wages ('Vorenthalten und Veruntreuen von Arbeitsentgelt'), the smuggling of foreigners ('Einschleusen von Ausländern'), and tax evasion ('Steuerhinterziehung'). The shelf-stocking companies, which were subcontracted by a large food company, are accused of failing to properly register their employees for tax and social security purposes.

Investigators suspect that some of these companies may have been 'shell companies' ('Scheinunternehmen'), existing for only a few months before disappearing. The Public Prosecutor's Office Munich I stated that the investigation has revealed a 'system' that developed over the years.

Arrests Made and Further Proceedings Underway

As part of the ongoing investigation, eight arrest warrants have been issued. One defendant is already facing trial at the Regional Court Munich I, while three other suspects are currently in pre-trial detention. Authorities also confirmed that other individuals involved are currently at large. Notably, the shelf-stockers themselves, many of whom are from Afghanistan and often did not receive the minimum wage for their work, are not among the accused. An employee of the large food company that contracted these shelf-stocking services is also under investigation.

Broader Implications for Public Funds

The estimated damage of at least 20 million Euros highlights the significant financial impact of such fraudulent activities on public finances and social security systems. Authorities have indicated that this figure might only be 'the tip of the iceberg,' suggesting that the total damage could be even higher as the investigation progresses. The case underscores the persistent efforts of Bavarian authorities to combat undeclared work and organized fraud within various industries.