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US Justice Department Began Checking Wirecard For Involvement In Marijuana Fraud

US Justice Department Began Checking Wirecard For Involvement In Marijuana Fraud

US Justice Department is checking the German FINTECH company Wirecard for involvement in financial fraud of $100 million related to the online trade-in marijuana, writes the Wall Street Journal, citing knowledgeable sources.

According to them, two businessmen have already been charged with fraud. They are charged with conspiring with third-party payment operators and others to obtain confirmation of credit card payments for marijuana from American banks. For this purpose, shell companies with accounts in offshore commercial banks were used, which, in turn, received significant commissions from operations.

Now the Prosecutor's office of the New York City borough of Manhattan and the local branch of the Federal Bureau of Investigation (FBI) are investigating whether Wirecard played any role in the alleged collusion, acting as both a payment operator and an offshore bank, sources told the WSJ. Authorities are also investigating the possible involvement of some of Wirecard's former and current top managers.

In the US, the company has not yet been charged. The electronic database of the US judicial system does not contain any materials on this subject, the article says. However, according to court documents, when one of the two businessmen -- an e-Commerce consultant from Germany-was detained in California in March, a member of the Wirecard management offered to facilitate his release on bail.

A Wirecard spokeswoman declined to comment on this information.

The Justice Department's investigation adds to the many problems faced by the payment company, which until recently was worth more than the country's largest Deutsche Bank.

The Wirecard scandal began to flare up in late June when EY auditors failed to confirm the presence of 1.9 billion euros in the company's trust accounts in Philippine banks. The company's Board of governors admitted that these funds might not have existed at all. As a result, the company was unable to publish its annual report and withdrew its accounts for previous periods. Wirecard sued a statement about the beginning of the procedure of bankruptcy. The company's shares fell by more than 90% during the five days that these events unfolded.