06/23/2020
ForkLog
Munich police detained MarkusBrown, former head of the issuer of payment cardsWirecard, which resigned amid a scandal with lost € 1.9 billion. According to Deutsche Welle, he is suspected of falsifying data on cash balances on the company's accounts.
The scandal broke out after the Ernst auditor& Young (EY) was unable to confirm the presence of balances in Wirecard accounts amounting to €1.9 billion, equivalent to 32% of the company's stated assets under management.
Munich’s prosecutor’s office says the ex-CEO of Wirecard inflated sales through fake transactions to increase the company's investment appeal, while it could have accomplices.
A day earlier, the company's new management wasforced to admit that € 1.9 billion in accounts probably never existed. Management withdrew the preliminary results for the previous year, the first quarter of 2020 and the profit forecast for 2020.
Feverish search for missing money stalledlast weekend after the Central Bank of the Philippines did not confirm that the indicated amount was stored in trust accounts in a number of financial institutions of the country. On June 19, the company hired the investment bank Houlihan Lokey, which has to find ends in this complicated story.
In October 2019, it was reported that employeesWirecard could have entered into a conspiracy to fraudulently inflate the sales and profits of the company’s divisions in Dubai and Dublin, as well as deceive EY over the years.
Four days before today's arrest, Brownleft the post of CEO of Wirecard, having worked in it for a total of 18 years. Before leaving, he admitted that the company could become a victim of large-scale fraud. Along with Brown, Jan Marsalek, a member of the board and chief operating officer of Wirecard, left the company.
By the end of the day, June 23, the judge will choose a preventive measure against Brown. Since the emergence of information about problems, Wirecard shares have fallen 85%.
CEO Crypto.com Chris Margalek, who along with TenX and CryptoPay collaborated with Wirecard, assured that the funds of the company's customers are safe in segregated accounts with another bank in accordance with the requirements of the Financial Supervision Authority of Great Britain (FCA)
Recall the US Securities and Exchange Commission(CEC) has secured a freeze of assets against two brothers from Pennsylvania and related three organizations to stop fraud by tens of millions of dollars.
