(BERLIN) — The previous CEO of German fee service supplier Wirecard has been arrested in an accounting scandal that facilities on a lacking sum of 1.9 billion euros ($2.1 billion), prosecutors in Munich mentioned Tuesday.
Markus Braun resigned on Friday after the corporate disclosed that auditors couldn’t discover accounts containing the cash. On Monday, Wirecard mentioned it has concluded that the cash in all probability doesn’t exist.
Prosecutors mentioned a court docket issued an arrest warrant shortly afterward and Braun turned himself in on Monday night.
He’s accused of inflating the corporate’s steadiness sheet and income, “probably in collaboration with additional perpetrators,” in an effort to “painting the corporate as financially stronger and extra enticing for buyers and purchasers,” they mentioned in a press release.
Braun was arrested on suspicion of incorrect statements of knowledge and market manipulation.
Wirecard AG was as soon as thought to be a star of the rising monetary expertise sector, however its shares have fallen sharply after the corporate grew to become the topic of a number of Monetary Instances studies about accounting irregularities in its Asian operations. Wirecard disputed the studies, which began in February 2019, and mentioned it was the sufferer of speculators.
On Monday the corporate introduced the firing of its chief working officer, Jan Marsalek, who had been suspended from the administration board final week. German information company dpa reported that Marsalek had been in control of overseeing every day operations together with in Southeast Asia, the place the doable fraud occurred.