Germany’s Biggest Post-War Fraud Case Goes on Trial

Yesterday, three former executives of Wirecard, a financial services company, went on trial in Berlin, accused of perpetrating the biggest case of fraud in post-war Germany.

The Scandal and Its Consequences

The collapse of Wirecard has left a lasting stain on Germany’s fintech scene and embarrassed former Chancellor Angela Merkel, who had previously lobbied on behalf of the company during a visit to China. The scandal surrounding Wirecard’s collapse is said to have cost banks a staggering €3.1 billion in loans and writedowns.

The Allegations

Prosecutors in Munich have alleged that Markus Braun, Wirecard’s former CEO, signed off on financial reports he knew were false. The company allegedly booked non-existent revenue attributed to multiple partnerships in other countries and used fake documents to show it had funds it did not possess.

Those Involved

The trial also involves:

• Wirecard’s former head of accounting
• The managing director of its Dubai-based subsidiary
• Jan Marsalek, the company’s former chief operating officer (who remains on the run)

Defense and Trial Timeline

Braun’s lawyers have fiercely denied the charges against their client, claiming they are “seriously flawed” and “assume a false picture of the facts”. They argue that Braun was unaware of any wrongdoing by others. The complex trial is expected to run for over a year, with the outcome set to have significant implications for Germany’s financial oversight bodies and the reputation of Wirecard.

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