WIRECARD EX-CEO YIELDS TO GERMAN COPS

The former CEO of German financial technology company Wirecard has yielded to German police after he has been suspected of misrepresenting the firm's finances in an accounting scandal that centers on a missing 1.9 billion euros ($2.1 billion), prosecutors in Munich said Tuesday.


Markus Braun resigned on Friday after the company said that auditors couldn’t find accounts containing the money. On Monday, Wirecard said it had concluded that the money probably doesn’t exist, Geir Moulson wrote for the Associated Press (AP) late on June 23, 2020. A court issued an arrest warrant shortly afterward and Braun, who had been in Vienna, turned himself in on Monday evening but was later released on a 5 million-euro ($5.7 million) bail and report to police every week.

Braun is accused of inflating the company's financial position using sham income from other businesses, “possibly in collaboration with further perpetrators,” in order to “portray the company as financially stronger and more attractive for investors and clients,” the prosecutors said in a statement. Braun, an Austrian who had led Wirecard since 2002, was arrested on suspicion of incorrect statements of data and market manipulation.

In a separate Reuters report late on June 23, 2020, the Bank of Philippine Islands (BPI) and BDO said Wirecard was not a client and BDO has also said documents purporting to show Wirecard had deposited funds with it were false. However, BPI’s Cesar Consing said he was informed about it on June 15 when Wirecard’s auditors EY asked whether the Wirecard’s certificates of deposit to his bank were real. He discovered that a "very junior" assistant manager at BPI had signed the "bogus" certificate. He did not name the individual but the admission showed BPI could have been used to transfer the funds. Consing said he was terminating the assistant manager.

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