Arrested on suspicion of falsifying accounts after German payments firm disclosed a US$2.1 billion financial hole
MUNICH/FRANKFURT — Wirecard’s former boss has been arrested on suspicion of falsifying its accounts, after the German payments firm disclosed a US$2.1 billion financial hole and questioned whether trustees had actually held money on its behalf.
The former consultant traded in a suit for a black roll-neck and portrayed himself as a tech visionary, telling New York investors last autumn that Wirecard would increase revenues by six times by 2025 as digital payments boom. He now stands accused of misrepresenting Wirecard’s accounts and of market manipulation by falsifying income from transactions with so-called third-party acquirers, the Munich prosecutor’s office said earlier.
Finance Minister Olaf Scholz told Reuters on Tuesday that lawmakers should decide quickly how to tighten regulation following the Wirecard scandal, which had exposed lapses by both auditors and regulators. Wirecard’s shares have since shed more than 80% and its only listed bond is trading at 26 US cents on the euro, indicating that investors expect to lose most of their money.
Sources close to the talks said it was doubtful that Wirecard can continue as a going concern, while risks of litigation ruled out asset sales for now.
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