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BaFin Has Insider Suspicion Against Wirecard

BaFin Has Insider Suspicion Against Wirecard

The financial supervisory authority BaFin has informed the public prosecutor's office in Munich that it harbors an insider suspicion against the insolvent payment service provider Wirecard. A BaFin spokeswoman confirmed the Reuters news agency a corresponding "Handelsblatt" report. In the text, it had been said, among other things, a contribution in a stock exchange forum was problematic.

Eight days before the Wirecard Crash, a user wrote in it that the auditors of Ernst & Young (EY) would not be fully audited on June 18. According to the report, the Wirecard management did not provide any necessary evidence as to where significant amounts of collateral in escrow accounts came from. Employees would have passed this Information on to short sellers.

Thus, the anonymous whistleblower anticipated the test result of EY, wrote the "Handelsblatt." In spring 2020, group insiders at Wirecard had already been informed about problems with the audit of the financial statements.

The crash of Wirecard in the wake of a balance sheet scandal has made headlines worldwide. The once-celebrated financial services provider has confessed that 1.9 billion euros are missing in the annual balance sheet and that the money probably does not exist at all. In the meantime, Wirecard has filed for bankruptcy and may be facing liquidation. The Munich public prosecutor's office is investigating the case.

After the publication of the "Handelsblatt" report, a spokeswoman for the public prosecutor's office only confirmed earlier statements that there were extensive investigations against former Wirecard CEO Markus Braun and other accused persons. All crimes under consideration would be examined. She did not want to comment on the question of whether insider trading also belongs to this.