In what has been labelled the largest fraud case in post-war German history, the ex-chief executive of financial services business Wirecard and two other ex-managers went on trial on Thursday. Prior to declaring bankruptcy in 2020 and claiming that 1.9 billion euros that had been on its balance sheet could not be located, Wirecard was a standout performer in Germany’s fintech landscape. The incident embarrassed former German Chancellor Angela Merkel, who had pushed for the company during a trip to China, and brought to light weaknesses in Germany’s financial regulatory agencies.
Prosecutors in Munich allege that ex-CEO Markus Braun signed off on financial reports he knew were distorted. The firm allegedly booked nonexistent revenue it attributed to multiple partnerships in other countries and used fake documents to show it had funds that were ficticious.
The firm’s erstwhile head of accounting and the managing director of a Dubai-based subsidiary are also on trial.
According to authorities, the scam cost banks 3.1 billion euros in loans and write-downs.
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Former chief operational officer of the corporation Jan Marsalek is still absconding and is one of the case’s key players. The allegations against Braun, according to Braun’s attorneys, are “seriously flawed” and “assumed a false picture of the facts.” They assert that Braun was not aware of other people’s plots. The trial is anticipated to go longer than a year.
(With inputs from agencies)
