ARAG Criminal Legal Protection: Your Defense in Preliminary Proceedings for Illegal Employment

Investigations into allegations of illegal employment—particularly those conducted by the Customs Authority’s Financial Control Unit for Illegal Employment (FKS)—place a significant burden on companies in the construction industry. The allegations often include the withholding of social security contributions (Section 266a of the German Criminal Code [StGB]), violations of the Minimum Wage Act, or bogus self-employment. In this situation, a structured and expert legal defense is essential.

Using Your ARAG Criminal Legal Protection Coverage

If you have purchased ARAG criminal defense insurance, it generally covers the costs of legal defense in criminal and misdemeanor proceedings. This includes:

• Attorney's fees: The fees charged by the specialized attorney you have chosen.
• Court costs: Costs incurred during legal proceedings.
• Expert and witness fees: Costs for necessary expert opinions and the examination of witnesses.

Our law firm has experience working with ARAG Legal Protection Insurance. We handle the administrative process for you, starting with obtaining a confirmation of coverage, so that you can focus on your core business.

No information will be provided without access to the file

The principle of not providing any information about the case before the defense attorney has had full access to the case file is one of the most important prerequisites for a successful defense. You will learn that a preliminary investigation is being conducted against you through a search (raid) or in the following ways:

Written Notice of the Initiation of a Preliminary Investigation

This is the most common procedure. The investigating authority—usually the Main Customs Office (Financial Control of Illegal Employment)—will send you an official letter. This document typically has the following subject line: “Notice of the Initiation of an Investigation; Written Hearing Pursuant to Sections 136 and 163a of the Code of Criminal Procedure (StPO).”

This letter informs you that you are being treated as a suspect and specifies the exact charge against you. Typical charges include:

• § 266a (1) and (2), No. 1 of the German Criminal Code (StGB) (Withholding and Embezzlement of Wages): The Main Charge in Cases of Illegal Employment
• § 8 (3) of the Illegal Employment Act (Careless Withholding and Embezzlement of Wages)
• § 111 (1) No. 2 a) and b) of SGB IV (Failure to Comply with Reporting Requirements)

The letter is usually accompanied by a response form, which gives you the opportunity to submit your comments in writing.

Important: This letter contains a legal notice that clearly informs you that you have the right to speak or remain silent and to retain an attorney at any time. You should definitely exercise this right. Do not fill out the hearing form and do not submit a statement. Instead, contact us immediately for an initial consultation.

Witness interviews in the surrounding area

Sometimes, company executives learn about investigations indirectly because employees, business partners, or customers are summoned by the police or customs authorities to testify as witnesses. If you hear about something like this, it is a serious warning sign that an investigation is underway that could soon target you as well. In this case, it is necessary to seek legal counsel.

‍The Course of the Mandate

1. Initial Contact and Consultation: You contact us, and we conduct an initial assessment of your case.
2. Coverage Inquiry with ARAG: We will review the insurer’s obligation to pay, free of charge, and submit a coverage inquiry to your legal expense insurance provider to ensure that your legal fees are covered.
3. Access to Case Files and Strategy: Once coverage has been approved, we immediately request access to the case files. Based on the investigative file, we analyze the allegations and the evidence and develop a defense strategy.
4. Communication and Case Management: We handle all communication with the investigating authorities (Customs, the public prosecutor’s office) and represent you out of court during the preliminary investigation and, if necessary, in court.

Outstanding Expertise

Dr. Tony Rostalski is a certified criminal defense attorney specializing in the defense of clients in cases involving commercial and tax criminal law. The firm places a particular emphasis on advising and defending companies and executives in the construction industry. The firm is regularly ranked as a a top firm .