Ex-Wirecard CEO Markus Braun arrested amid $2.1 billion scandal

Ex-Wirecard CEO Markus Braun arrested amid $2.1 billion scandal

German authorities arrested former Wirecard CEO Markus Braun times just after he remaining the payments organization amid a $2.1 billion accounting scandal.

Munich prosecutors accused Braun of using bogus revenue from transactions with “third-celebration acquirers” to inflate Wirecard’s property and sales quantity and make it far more beautiful to buyers. Braun turned himself in Monday night and will appear Tuesday right before a choose who will determine whether to keep him detained, in accordance to a translated statement from the prosecutor’s office.

Braun’s arrest came after Wirecard disclosed 1.9 billion euros that was lacking from its accounts probably hardly ever existed to begin with. The company’s auditor refused to signal off on its accounts for 2019 since it couldn’t validate the money’s existence.

Prosecutors stated Braun, who resigned on Friday, might have committed his alleged offenses “in cooperation with other perpetrators,” adding that their investigation is only a several times previous. Prosecutors may perhaps also problem an arrest warrant for ex-chief running officer Jan Marsalek, whom Wirecard fired on Monday, resources common with the issue advised Reuters.

Wirecard did not right away react to a request for remark Tuesday.

The scandal has sparked a substantial reversal of fortune for Wirecard, a 21-12 months-aged financial tech enterprise as soon as beloved by investors. The firm’s share cost has plunged far more than 80 per cent given that it acknowledged the lacking funds past 7 days.

Wirecard has been dogged by Monetary Times reviews on allegations of accounting fraud in the company’s third-get together obtaining company, which reportedly involves dealing with payments for merchants. The newspaper published paperwork past year that it explained indicated “a concerted effort to fraudulently inflate product sales and profits” at Wirecard companies overseas.

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Cory Weinberg

About the author: Cory Weinberg

Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.

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