Financial Fraud in Germany: Wirecard Scandal Exposed in Court

===============

Trial Begins for Former Wirecard CEO Markus Braun

Berlin, December 8, 2022 - The trial of former Wirecard CEO Markus Braun has commenced at a high-security courtroom in Munich’s Stadelheim prison. This marks a significant milestone in the investigation into Germany’s largest financial fraud case.

Background: Wirecard’s Rise and Fall

Wirecard was founded in 1999 by Braun and others, initially processing online credit card payments before expanding into banking. By 2005, it listed on the Frankfurt Stock Exchange, and by 2018, it had joined the Dax 30 index of Germany’s leading blue-chip companies.

However, behind the scenes, accounting irregularities and money laundering allegations had been accumulating for years. In 2016, an unknown research firm linked Wirecard to fraud, but the company deflected accusations, and German financial authorities backed them up. When investigative journalist Dan McCrum of the Financial Times wrote about the company’s problems, he was targeted by Wirecard.

The Scandal Unfolds

In early 2019, the company rejected as “defamatory” an FT report that bosses had forged and backdated contracts. Leaked documents soon revealed accounting issues in Wirecard’s Asian operations, but the company blamed speculators.

The collapse of Wirecard began in June 2020 when it admitted that €1.9 billion missing from its accounts probably never existed. Two banks in the Philippines thought to hold the money said they had not been Wirecard clients, and the company filed for insolvency protection from creditors.

Charges Against Braun

Prosecutors accuse Braun of signing off financial reports he knew were inaccurate, and claim that Wirecard faked documents to show it had money that did not exist. The trial is expected to last well into 2024 and will be closely watched by those who lost large sums investing in the company.

Investigation Continues

Wirecard’s former chief operating officer, Jan Marsalek, remains on the run and suspected of having committed commercial gang fraud. He is believed to have fled to Russia after going missing in June 2020.

The trial of Markus Braun marks a significant step forward in uncovering the truth behind Germany’s largest financial fraud case. The investigation continues, with many still seeking answers about the collapse of Wirecard and those responsible.