Wirecard: Public prosecutor is alarmed – rating suspended

In the night from Sunday to Monday, the situation at Wirecard increased dramatically. So far, the group played under the now gone CEO Markus Braun as a victim of conspiracy theories and fraud, under the new CEO James Freis it seems to deal differently with the events around the third party business and the alleged trust accounts in Asia.

“Based on further audits, the Management Board of Wirecard AG is currently assuming that the bank balances on trust accounts totaling EUR 1.9 billion previously reported in favor of Wirecard will most likely not exist,” said the ad hoc Message tonight. Even more: “The management board also assumes that the previous descriptions of the so-called third party business (third party aquiring) by the company are inaccurate. The company continues to investigate whether, in what manner and to what extent this business was actually carried out in favor of the company, ”said the company, which at the same time withdrew preliminary figures and forecasts for the full years 2019, 2020 and the first quarter of 2020. All of this in today’s big 4investors report: click here.

The admission calls on the prosecutor. As the news agency dpa-AFX reports, the group could face further investigations by the authorities. “We are investigating all possible criminal offenses,” says a spokeswoman for the Munich I public prosecutor’s office today. Investigations are also underway against the management of the former CEO Markus Braun. Parts of the management are still in office, says Alexander von Knoop, CFO of the Group since 2018 and previously at Wirecard Bank on the board and managing director of Wirecard Acquiring & Issuing GmbH, and Susanne Steidl, who has been CPO on the board of Wirecard since 2018 and previously also worked for Wirecard for many years, including as Managing Director Wirecard North America Inc.

The rating agency Moody’s reacts to the news and suspends the rating for Wirecard. The agency had her last Wirecard’s rating has already been lowered by six levels from “Baa3” to “B3”. The developments are likely Wirecard’s position in ongoing negotiations with lending banks continue to weaken.


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