Crime - Former Wirecard CFO indicted
The Munich public prosecutor's office has now also brought charges against a former Wirecard CFO. One year after the start of the trial against the CEO Markus Braun, the public prosecutor's office also considers the former CFO to be guilty of commercial and gang fraud, market manipulation, misrepresentation and breach of trust. The 12th Commercial Criminal Chamber of the Munich Regional Court must decide whether to admit the charges and set a trial date, the public prosecutor's office announced.
The payment service provider Wirecard, which is listed on the leading DAX index, collapsed in summer 2020 because 1.9 billion euros in proceeds allegedly held in Southeast Asian escrow accounts could not be found. Former CEO Braun, who is in custody, and two co-defendants have been on trial at Munich Regional Court since December 2022 on suspicion of fraud with billions of euros in losses for the lending banks. Braun denies all allegations.
False annual financial statements signed
In its indictment, the public prosecutor's office accuses the former Wirecard CFO of faking group sales with Braun and others. The fictitious financial figures were intended to boost share prices and obtain bank loans. The accused, a predecessor of the fugitive Jan Marsalek, had signed the false annual financial statements for 2015 and 2016 as CFO. As a result of his actions, the banks suffered losses amounting to several hundred million euros.
After leaving the Group in 2018, he "continued to aid and abet the crimes of misrepresentation, market manipulation and commercial and gang fraud committed by the remaining gang members in 2018 by providing consulting services". In addition, he was guilty of breach of trust towards Wirecard AG by assuming a guarantee for a loan from Wirecard Bank through Wirecard AG.
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- The former Chief Financial Officer (CFO) of Wirecard, a payment service provider listed on the DAX, is now facing charges in Germany, as the public prosecutor's office in Munich has indicted them for commercial and gang fraud, market manipulation, misrepresentation, and breach of trust.
- The accusations against the former Wirecard CFO include collaborating with the former CEO, Markus Braun, in faking group sales, with the intention of boosting share prices and securing bank loans, as stated in the public prosecutor's office munich's indictment.
- The collapse of Wirecard in the summer of 2020, resulting in a shortage of 1.9 billion euros in supposedly held proceeds in Southeast Asian escrow accounts, led to a trial against Markus Braun and two co-defendants at the Munich Regional Court since December 2022, with charges of fraud and losses for the lending banks.
- The accusations against the former CFO extend beyond their time within the company, alleging that they continued to support the misrepresentation, market manipulation, and commercial and gang fraud committed by the remaining group members in 2018 by offering consulting services.
- In addition, the public prosecutor's office accuses the former CFO of acting in breach of trust towards Wirecard AG by assuming guaranteed a loan from Wirecard Bank through Wirecard AG, further damaging the company's finances.
- The admission of charges and the setting of a trial date for the former Wirecard CFO will be decided by the 12th Commercial Criminal Chamber of the Munich Regional Court, following the announcement from the public prosecutor's office munich.
- Despite being in custody, Braun, the former CEO of Wirecard, denied all allegations made against him and the other co-defendants, causing a stir in the German financial and legal worlds.
- The charges against both Braun and the former CFO have put not only Wirecard, but also the wider German financial services industry, under scrutiny, with experts warning of potential systemic risks and the need for reforms to strengthen public oversight and accountability.
Source: www.stern.de
