The Wirecard case begins, the biggest financial scandal in Germany
Former executives of payments company Wirecard, which has signed one of the biggest financial scandals in German history, will go on trial on Thursday (Dec 8), two years after the company went bankrupt.
Wirecard AG’s former chief executive officer (CEO) Markus Braun and two other chief executives face a range of charges, including fraud and market manipulation, in a Munich court, and could face up to 15 years in prison if convicted. guilty.
MANAGERS ARE CHARGED WITH SHOWING INCREDIBLE INCOME
As German police searched more than 40 properties in Germany, prosecutors scanned 42 terabytes of data and prepared a 474-page indictment.
Prosecutors accuse Wirecard management of displaying large amounts of fictitious income on balance sheets to mislead investors and creditors, while Markus Braun denies the charges.
While the case highlights 100 court dates tentatively scheduled for the end of next year, a court decision on the scandal is not expected until 2024 at the earliest.
THE LARGEST FINANCIAL SCANDAL IN GERMAN HISTORY
In 2020, Wirecard, which until a few years ago was considered the “future of German financial technology”, became the address of the biggest financial scandal in the country’s history after it was revealed that more than 1.9 billion euros were lost on the balance sheet. of the company. bed sheet.
The company filed for bankruptcy after debts worth 3.2 billion euros were revealed.
After the scandal, the German Federal Banking Regulatory Agency (BaFin) faced accusations from the German and European public that it failed to audit the fintech company.
MERKEL AND SCHOLZ WERE CRITICAL
In 2020, the then Chancellor Angela Merkel and the then Finance Minister, the current Chancellor Olaf Scholz, were criticized for being inadequate in their oversight of the company.
Founded in 1999, Wirecard’s shareholders include The Goldman Sachs Group, Morgan Stanley, Societe Generale SA, Bank of America Corporation, and Citigroup.
The scandal arose after EY, which oversees Wirecard, did not confirm financial results from last year, claiming more than 1.9 billion euros were missing from the company’s 2019 accounts.
Wirecard AG shares were listed on the Dax 30 index, which includes the largest companies in Germany.
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
