Former CEO of Wirecard arestovana Saveliev | 23.06.2020
Marcus brown is a suspect in the falsification of the company’s revenues. So he tried to put Wirecard strong and attractive in the eyes of investors and customers.
On Monday, the German FINTECH company announced that 1.9 billion euros (2.15 billion dollars), which indicated in its statements, most likely never existed. In fact they created
“black hole”, which may disturb the stable solvent position of the Corporation.
The auditing firm EY refused to sign the reports for 2019, and as they were not able to confirm the presence of 1.9 billion Euro of the balance on target accounts, which is about a quarter of the balance.
Thereafter, the shares of Wirecard fell more than 60%. Over three sessions, at the end, the paper has lost more than 85%.
As explained by the Munich Prosecutor’s office, brown surrendered on the evening of 22 June. Before that, on Friday, he resigned. On Tuesday, June 23, is the first hearing where the judge will decide whether
the accused is to be detained.
Marcus was headed by Wirecard since 2005, and it was he who turned a small Berlin startup to international Corporation.
At the moment, he is credited with the distortion of the statements of the company and market manipulation by falsifying profits from transactions with the so-called third-party buyers. However, the Procurator
is considering the issuance of an arrest warrant Jan Marsalek, member of the Board of Directors. He was suspended from work, and then, on Monday, fired.
Now conducted urgent negotiations with the banks, who are owed approximately 1.75 billion euros to urgently to close this “hole”.
Problems with the audit were noted last year, when employees of Wirecard overstated sales and profits of its business units in Dubai and Dublin. Employed at the same auditing company KPMG are unable
to monitor a large portion of the transactions behind the Wirecard profit in the period from 2016 to 2018.
However, on Tuesday, the Central Bank of Singapore has received a request from Wirecard for licensure in accordance with the new Law on payment services in the country.
Recall that the amendments should create an innovative environment for financial technologies and aims at consolidating the regulation of services. Previously it was carried out separately.
Its main activities indicated Wirecard payment processing on the part of sellers and companies providing assistance in the release of “pre-paid cards” (cards with a certain denomination without the possibility
replenishment).
FINTECH, right
