Former Wirecard CEO rearrested as prosecutors suspect USD 3.7 bln fraud

Thursday 23 July 2020 12:42 CET | News

Markus Braun, former chief executive officer of Wirecard, has been rearrested in Munich, prosecutors said on July 22, 2020.

Alongside Braun, the Munich public prosecutor’s office announced in a statement emailed to CNBC that two other unnamed former executives were also detained. The German prosecutors now suspect Wirecard knew it had been lossmaking since 2015 and that its management conspired together in an organised commercial fraud of around USD 3.7 billion.

The large Germany-based payments company collapsed into insolvency in June 2020, after revealing 1.9 billion euros of cash had gone missing from its accounts. The suspects borrowed funds totalling about USD 3.7 billion come from banks in Germany and Japan, prosecutors said, adding the cash is most likely lost due to Wirecard’s bankruptcy.

Wirecard has said it will not be making any further statements.

To learn more about the Wirecard scandal and how digitalisation can be marshalled to tackle money launderers, check out also our article here.

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Keywords: accounting fraud, commercial fraud, Wirecard, Wirecard scandal, Germany, fraud prevention
Categories: Fraud & Financial Crime
Countries: Germany
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Fraud & Financial Crime

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