The business of Germany’s Wirecard may have been little more than a smokescreen to shield the management’s ulterior motives – former members of staff are coming clean over what they say had been evident for years.
Harsh allegations are circulation in the German media on why and how Wirecard failed. The fintech is said to have been loss-making for a full fifteen years before it failed, according to report by «Handelsblatt», which cited a former member of the executive board, whose name wasn’t revealed (report in German).
Discussions about the apparent operational difficulties with CEO Markus Braun had not been fruitful and the ex-manager had come to the conclusion that Wirecard was all about creating a story for the stock market, according to the report in the German newspaper.
Presenting a Perfect Image
Today, Braun is in custody, being investigated by the German authorities for fraud and false accounting. Oliver Bellenhaus, the head of the Middle Eastern business of the firm, was arrested at the beginning of the month upon his arrival in Munich. Jan Marsalek, ex-head of Asia, has an international arrest warrant pending while he remains fugitive.
Further members of staff of the German payment services provider told the newspaper that the management never really was bothered about business matters, but instead sought to present the firm in the best of light to banks and shareholders.
Getting Rid of His Stock
The alleged wrongdoings have led to the apparent disappearance of 1.9 billion euros, with shareholders stuck with their now worthless securities. Braun meanwhile took the chance to get rid of the majority of his shares while he could, selling out in mid-June 2020.
