Judiciary
FORMER Wirecard (WDIG.DE) 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.
On Monday, Wirecard had said that the 1.9 billion Euros (2.15 billion dollars) it had booked in its accounts likely never existed, a black hole that threatens to engulf the payments company.
Prosecutors said Braun turned himself in on Monday and would appear before a judge later in the day who would decide on whether he would remain in custody.
However, 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.
Recently, Wirecard said 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.
Report says 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.
Two people familiar with the matter said that state prosecutors in Munich are also considering issuing arrest warrants for Jan Marsalek, a board member fired on Monday.
However, his lawyer was not immediately available for comment. (Reuters/NAN)
– Jun. 23, 2020 @ 13:49 GMT |
Tags: Former CEO of scandal-plagued Wirecard arrested on suspicion of falsifying revenue – Prosecutors
