Suspicion: fraud Wirecard stock crashes

The price of the Wirecard stock plunged after the news, up to two-thirds of 35 euros in the cellar, and was last with 43 per cent in the Minus at 59,48 EUR. The price does not recover to be sustainable, threatening the group, according to experts, in September, even the descent from the Dax.

Actually, the payment processor from Aschheim near Munich, wanted to do still in the morning, several times suspended publication of its annual financial statements. After the group of a special audit by the audit company the financial statements for the years 2016 to 2018 are already KPMG had undergone, looked at the regular auditors of Ernst & Young (EY) now the 2019er Numbers very thoroughly.

It audit is a lack of evidence for 1.9 billion euros

However, for the certification, you need to give the statements prior to publication would have lacked the apparently critical documents. EY informed the group about the existence of Bank balances on escrow accounts in the amount of EUR 1.9 billion, sufficient audit evidence will be available. There is evidence that the auditor of a Trustee or from the area of banks, which cause the fiduciary accounts, “incorrect balance confirmations for the purpose of Deception have been submitted”. In order for it to go to about a quarter of Wirecards total balance sheet total.

The background of the current releases from the two banks that the trust accounts since 2019, be it said. Accordingly, each of the account numbers could not be assigned. “The responsible Trustee is in continuous contact with the banks and the Wirecard AG.” According to Wirecard CEO Markus Braun of the economy has not recognised auditors previously issued confirmations from the banks. “All Parties are committed to the fastest possible education,” assured the Manager.

The information suggests that subsidiaries have to pay, Wirecard, on the trust accounts security deposits from a total of 1.9 billion euros, to guarantee for the risk management for participating merchants. The accounts would had led by two Asian banks, both of which are grade a Investment Rating. Since 2019, the President of the Trustees perceive in Asia, many mandates, write, Wirecard more.

Wirecard see yourself as a potential victim of a “gigantic fraud”

Wirecard see yourself as a potential victim of a “gigantic fraud,” said a spokesman. The group intends to report to, therefore, now a complaint against an unknown. “All Parties are committed to the fastest possible education,” said chief Executive brown. According to him, for this is still unclear, “whether cheaters are present procedures to the detriment of Wirecard.”

The payment processor is one of a series of articles with allegations in the British Financial Times beginning in 2019 under pressure. With KPMG’s special audit of previous balance sheets of the Board of management wanted to Polish the scratched reputation of the group, actually.

Meanwhile, the financial Supervisory authority, Bafin, however, be reimbursed because of possibly misleading Ad-hoc announcements of the company to issue a criminal complaint. Just a few days ago by the public Prosecutor’s office investigated, therefore, the business premises of the group. After becoming aware of the suspected fraud on Thursday, the Bafin announced in addition, the study extend. “Of course, the current situation flows in our ongoing market manipulation investigation,” said a spokeswoman for the authority.

Wirecard threatens the financial pressure

Now, Wirecard is also under financial pressure. The group should have an audited financial statement up to this Friday (19. June) not present, banks might terminate him existing loans in the amount of about two billion euros, warned the company.

A new date for the presentation of the consolidated financial statements is not fixed, however. “The Board is working hard, the facts of the case, in consultation with the auditor to further clarify,” it said. Threatens to matters worse, Wirecard due to the re-displacement of the balance sheet template in Trouble with the German stock exchange. As usual in such cases, would be assessed on the basis of the non-timely delivery of the annual financial report, the initiation of a sanction procedure, said a spokesman for the German stock exchange, the financial news Agency dpa-AFX.

Provisional Figures show sales growth

According to preliminary Figures, Wirecard, published on Thursday, finally, the company increased its transaction volume in the past year, 38.5 percent to 173 billion euros. Sales increased by 37.5 percent to 2.8 billion euros. The net profit grew by almost 39 percent to 482 million euros.

Wirecard offers merchants on the Internet and also offline the technology for the processing of electronic payments, such as the acceptance of credit cards and also the risk-hedging of payments. To the via its own platform, transactions, Wirecard on fees earned.

Even in the corona crisis, the business continued to grow last, also, because the people buying in the face of the pandemic, and closed shops are increasingly online and more often on the cash reclaimed. As a result, the group was able to cushion the impact, according to published in may, preliminary Figures, significant declines in business with the airlines and travel agencies. dpa