Court judges 18 accused of defrauding Social Security through a business with no real activity

The prosecutor requires five years in prison for the two main defendants and two years for the others


The Provincial Court of Cantabria will next week try 18 people accused of social security fraud through a company that sells vehicles and constructions and repairs, for which the prosecution is asking for sentences ranging from two to five years in prison.

The trial is due to take place on November 21, 22, 24 and 25, in sessions starting at 9:30 a.m.

According to the letter from the prosecution, two of the defendants acquired the said company, which until then presented and paid the social security contributions of its employees. However, since the purchase took place, the company has submitted the listings but has not earned any income from the quotas.

“The company did not have an actual registered office and tax address, it did not have a work center and it did not have the material means necessary to provide the alleged jobs in the construction sector and/ or sale of vehicles,” the letter reads.

And he adds that he has never dealt with licenses to perform his work and has not been able to provide any commercial contract for work or services or invoices for work performed, “and that because none have ever been provided, being a company with no real activity.”

In these circumstances, the two defendants, “completely simulating a non-existent employment relationship and knowing that the jobs were never going to be filled, proceeded to register numerous workers with Social Security”.

Moreover, they were kept in this situation “long enough to be able to access unemployment benefits and subsidies, without ever paying the corresponding social security contributions”.

Subsequently, they were given the document of termination of the employment relationship and the company certificate, thus facilitating the payment of benefits to the alleged workers.

The rest of the defendants are people who agreed with the two precedents and signed employment contracts, “even knowing that they were never going to exercise any professional activity”, specifies the prosecutor.

In exchange for obtaining the fictitious contract, these people allegedly handed over to the other two defendants sums of money which could not be determined.


The Public Prosecutor’s Office considers the facts as a continuous offense of lying in competition with an offense of Social Security fraud, deserving, in the case of the two main defendants, a five-year prison sentence for each, a fine of 441,044 euros and a loss of the possibility of obtaining subsidies or tax and social benefits for eight years.

For the other defendants, he requires a two-year prison sentence and a fine of 4,500 euros. In addition, it asks them, under civil liability, to compensate the State Public Employment Service (SEPE) for the sums they wrongly received.

The General Treasury of Social Security and the SEPE are taking public action and are joining the request for sentencing formulated by the Public Prosecutor’s Office for the two main defendants.

For the rest, they ask that the prison sentence be a little heavier: two years and one month in prison, with a fine of 4,500 euros that the prosecution also requires.

In addition, in the SEPE case, he asks, under civil liability, that the two main defendants indemnify him jointly and severally in the amount of 65,230 euros, and the rest of the defendants in the amount of the sums unduly received.

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