Logo
Friday, 03 July 2020
Logo
The News and Media Division of The Insight Partners
Tuesday, 23 Jun 2020 04:00 pm

Former Wirecard CEO arrested on suspicion of falsifying revenue: prosecutors

Wirecard had said on Monday that 1.9 billion euros ($2.15 billion) it had booked in its accounts likely never existed, a black hole that threatens to engulf the payments company.

newsImage
 

Former Wirecard Chief Executive Markus Braun has been arrested on suspicion of falsifying company revenue to make it appear stronger and more attractive for investors and customers, prosecutors said in a statement on Tuesday.

Wirecard had said on Monday that 1.9 billion euros ($2.15 billion) it had booked in its accounts likely never existed, a black hole that threatens to engulf the payments company.

Braun turned himself in on Monday evening and will attend a hearing on Tuesday where a judge will decide whether he is to remain in custody, the Munich prosecutors said. Braun’s lawyer was not immediately available for comment.

Braun is accused of misrepresenting the company’s accounts and of market manipulation by falsifying income from transactions with so-called third-party acquirers, the prosecutors added.

Wirecard said last week that auditor EY had refused to sign off on its 2019 accounts as it was unable to confirm the existence of 1.9 billion euros in cash balances in trust accounts, about a quarter of its balance sheet.

The one-time investor darling is now holding emergency talks with its banks, which are owed roughly 1.75 billion euros, to avert a looming cash crunch triggered by the missing money.

The episode marks a dramatic turn in the fortunes of a home-grown tech firm that attracted some of the world’s biggest investors before a whistleblower alleged that it owed its success in part to a web of sham transactions.

Read here

Tags Wirecard Business Stock Market Germany Financial Credit ratings Markus Braun

Neha Pandey

Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.


Smarter Decisions with Smart News

Smart Market News is committed to getting its readers the latest updates and insights on industries that help in making “smarter” business decisions. With insights and inputs from corporate decision makers, we bring you the stories of adopting innovative solutions and strategies that have been changing the world. Our editorial insights on products, solutions, companies, and adoption of best practices not only help in understanding the markets better, but also prove to be a complete package for your information needs.

media@smartmarketnews.com | sales@smartmarketnews.com

Contact Us
Subscribe to our newsletter
Get the latest in your inbox weekly Sign up for the fully charged newsletter
Follow Us:
© The News and Media Division of The Insight Partners 2019 | All Rights Reserved | Privacy Policy