Germany Suspects Wirecard Management Of Money Laundering
In Germany, prosecutors are checking top managers of the fintech company Wirecard AG for possible money laundering. The checks are related to several possible money laundering cases in Wirecard, with the oldest dating back to 2010, a spokeswoman for the Munich Prosecutor's office told Dow Jones. At least two investigations concern the company's activities in the United States.
In 2010, an FBI investigation into a German citizen living in Florida found that he allegedly ran an unlicensed money transfer business to pay illegal profits from online casino bets. According to documents seen by the Wall Street Journal, Wirecard's banking business was linked to the transfer of some of this money.
In late 2015, German prosecutors raided Wirecard's offices at the request of the US authorities, who were investigating money laundering, a spokeswoman for the Prosecutor's office said, without providing additional information.
The Wirecard scandal erupted 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 head of Wirecard, Marcus brown, resigned and was soon arrested on suspicion of misrepresenting financial statements. Also this week, prosecutors arrested the managing Director of Wirecard's Dubai division, Oliver Bellenhaus, as part of an investigation into the company's revenue fraud.