On Monday, German prosecutors have arrested the former CEO of FINTECH company Wirecard Marcus brown. The arrest of Mr. brown was a continuation of the Wirecard scandal that erupted after it was discovered lack of €1.9 billion in the accounts of the company and a possible overstatement of its sales staff. In recent days the company’s shares fell by 90%.The scandal around one of the largest German FINTECH companies Wirecard, which began last week, continues to evolve — German prosecutors have arrested the former CEO of Marcus brown. On Tuesday said the Prosecutor’s office of Munich. That is where the headquarters of Wirecard.Wirecard, created in 1999, is one of the pioneers of the FINTECH sector in Germany and in the world as a whole. The company, now engaged in online payment processing, various financial online services, card issuance, etc., survived the dot-com bubble, went IPO in 2000, and reached a peak in 2018. Then Wirecard has entered an index of German blue chips — Dax 30, its market capitalization amounted to €24 billion, and the company was one of the most attractive for investors in Germany.Mr. brown is suspected of involvement in the manipulation of data on the balance of funds on accounts of the company and its sales. It is assumed that the involved employees of Wirecard inflated them to “represent the company more financially stable and more attractive to investors and customers.” On Tuesday, Mr. brown must appear before the court, which shall decide on the measure of restraint.In such fraud suspect, not only the former CEO, but other top managers of the company. In this case the Prosecutor did not mention the names of other employees who may be charged and are not informed whether in their relation the investigation.Although the problems Wirecard audit began last year and because of this she endured several times a publication reporting the real scandal of broke just last week. Thursday audit company EY, which conducted an audit of Wirecard, said about the shortage in her accounts of €1.9 billion Is almost a quarter of all funds stated on its accounts. In recent days, shares of Wirecard fell by 90%, and its market capitalization on Tuesday stood at €2.3 billion for the First time about the integrity of reporting and other data of the company told the Financial Times last year. Then the company’s shares also fell, but within a few months afterwards, Mr brown has repeatedly rejected any accusations against the company. After the publication of the statement EY, he acknowledged that “it cannot be excluded that Wirecard was the victim of a serious fraud case”.On Friday, Mr. brown resigned as Director-General. It happened after two Phil��Pinsky Bank, BDO Unibank and Bank of the Philippine Islands, in which, according to Wirecard, she kept the money, said that the confirmation of the custody of funds of the company they were fake and no money from the company they did not. Earlier, the company temporarily suspended operations Director Ian Marsalek. He was responsible for the control of current activity of the company, including in Southeast Asia, where it is believed he committed fraud.Monday Wirecard itself acknowledged the lack in their accounts of €1.9 billion, and the head of German financial regulator BaFin Felix Hufeld already called the situation of the Wirecard “a complete disaster” and a “disgrace” for Germany.Yana Christmas
