Major raid on winter service company: 115 officers search 21 properties in Vienna and Lower Austria

Suspicion: Undeclared work since 2017

A total of 115 officers took part in the large-scale operation, carrying out 21 house searches in Vienna and Lower Austria simultaneously. "Die Finanzpolizei hat zu einem umfangreichen Schlag gegen Schwarzarbeit ausgeholt", the Ministry stated. In addition to the Financial Police, officers from the Security Police and the Federal Criminal Police Office were also deployed. According to APA information, the searches took place simultaneously in the early morning hours.

During the house searches, investigators seized numerous documents, laptops, mobile phones and "namhafte Bargeldbeträge". In addition, narcotics and prohibited weapons were found, as the Ministry confirmed: "Bei den Hausdurchsuchungen wurden zahlreiche Beweismittel sowie namhafte Bargeldbeträge, Suchtmittel und verbotene Waffen vorgefunden." The recovered items suggest, in the investigators' assessment, a professionalized system of concealment.

Shell companies and straw men as a construct

To conceal the organized undeclared work, the accused are alleged to have built up an extensive network of shell companies and straw men. The BMF explained: "Dieses System diente mutmaßlich dazu, Betriebsausgaben vorzutäuschen, Sozialversicherungsbeiträge und Lohnabgaben zu hinterziehen und gleichzeitig liquide Mittel für die Entlohnung der illegal beschäftigten Arbeiterinnen und Arbeiter zu beschaffen". The investigators assume that the constructs created a false impression regarding employment relationships and cost structures both toward the authorities and toward the actual clients.

The customer structure of the accused company is particularly sensitive. "Zu den wichtigsten Kunden des Unternehmens zählten vor allem öffentliche Auftraggeber, insbesondere Gesellschaften und Hausverwaltungen, die der Stadt Wien zuzurechnen sind", according to a press release from the Federal Ministry of Finance. This also brings city-owned companies and private property management firms in the Vienna area into focus, which apparently obtained winter services from the suspect company for years without – according to the current state of the investigation – being aware of the systematic undeclared work.

City of Vienna as a customer

The accused company is alleged to have systematically deployed a large number of workers for snow clearance since 2017 without registering them for social security purposes. In plain language, this means: the workers deployed were not registered with the Austrian social security institutions for years. As a result, the state was denied contributions to health, pension and accident insurance, while the workers labored without social protection. The entire period of the alleged offenses spans, according to current findings, nearly a decade.

The investigation is being conducted jointly by the Economic and Corruption Prosecutor's Office (WKStA) and the Anti-Fraud Office. On Thursday, the Finance Ministry stated: "Die Ermittlungen der Wirtschafts- und Korruptionsstaatsanwaltschaft und des Amtes für Betrugsbekämpfung dauern an". When first concrete charges or arrests can be expected remained initially unclear. The authorities also provided no information on Thursday regarding the number of suspects or the alleged damage amount.

Investigations continue

The case throws a spotlight on the vulnerability of public procurement to organized crime in the area of seasonal services. Winter services are an economically relevant segment in Vienna: they secure sidewalks, stops and access roads to municipal residential buildings during the cold months. Precisely in this seasonally driven business with frequently short-term deployments, there are apparently loopholes for shell constructs, straw men and unregistered employment, from the investigators' perspective.

For the City of Vienna, the case is politically inconvenient, as public funds are directly affected through the customer relationships of city-affiliated companies and property management firms. How many specific contracts were awarded to the suspect company over the past years is currently unclear. The City itself did not comment publicly on the searches on Thursday; as a possible indirect injured party, it is naturally part of the further investigation.

The accused are legally suspected of aggravated social security fraud, tax evasion and – depending on the interpretation of the evidence – possibly also organized undeclared work within the meaning of the Social Fraud Act. Should the suspicion be substantiated, those responsible face multi-year prison sentences as well as substantial financial claims by the Austrian Health Insurance Fund and the tax authorities. Civil law follow-up – such as the assertion of outstanding social security contributions – is also likely.

Criminal law consequences

The house searches were coordinated, according to the BMF, so that suspects had no opportunity to destroy evidence in the meantime. This explains the unusually high personnel deployment of 115 officers simultaneously operating at 21 different locations. Such large-scale raids are generally carried out in Austria only when a complex investigation with many suspects and an extensive body of evidence is present – an indication that the authorities had been investigating the network for a considerable time.

The affected employees – mostly seasonal workers allegedly recruited through straw men and shell companies – are not in custody according to the current state of the investigation. They are considered witnesses or possible co-conspirators. For many of them, the exposure of the system means that claims for social security benefits could be asserted retroactively; at the same time, they also face criminal consequences if they were actively involved in the construct.

Open questions and outlook

While the judiciary advances the investigation, attention is also turning to the control mechanisms of the City of Vienna and city-affiliated companies. Going forward, the question will be raised as to how a company could manage to obtain public contracts for years without the responsible awarding bodies recognizing indications of the systematic undeclared work. Possible consequences range from tightened compliance requirements and external special audits to civil law claims for damages against the company and its officers.

Until the conclusion of the investigation, the presumption of innocence applies. Neither the WKStA nor the Anti-Fraud Office have so far published the names of suspects or specific company designations. APA reported the matter on July 2, 2026, with reference to the Finance Ministry's release. Further information is not expected until after the completion of the house searches and the evaluation of the seized evidence.