- German payments firm Wirecard the former chief executive Markus Braun was arrested by prosecutors after it is made, on Monday evening, according to reports.
- An arrest warrant has been issued by the Munich police, on behalf of the former paper billionaire for market manipulation and misrepresentation of data that describes the payments of the group as the most financially sound.
- Braun suddenly quit on Friday, capping a disastrous week for the scandal-hit firm after its shares have plunged up to 80%. It withdrew its full-year 2019, and the first quarter of the -2020 results.
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Wirecard of the former chief executive Markus Braun was arrested by German prosecutors on suspicion of false accounting and manipulation of business practices, according to several media outlets.
Braun went to Munich authorities, on Monday evening, after an arrest warrant has been issued. He is due to appear before a judge later Tuesday.
The former ceo has been accused of representing the company as a financially stronger by the inflation of Wirecard the balance and handling of the group’s share in the price.
All of a sudden he resigned from the company on Friday after the German payments firm recognized by some 1.9 billion euros (2.15 billion dollars) had gone missing from its balance sheet, prompting its share price to fall 80% over the course of two days last week.
In a short statement, It said that Braun has resigned with the agreement of its board of directors and as the company’s chief compliance officer, James Freis, the take on the interim ceo role.
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Last week, the company admitted that he was missing around $ 2 billion of its balance sheet after its auditor ernst & young has discovered the fact.
The fintech group subsequently claimed the amount should not exist in its accounts.
On June 18, Wirecard tried to contain suspicions when it said that while its financial results have not been published by the next day, then around 2 billion euros ($2.3 billion) worth of loans from the company may be terminated.
However, a report published by the financial investigative team of research at the Centre for Financial Research and Analysis has revealed that the company’s remaining balance is related to regulated entities, it does not have the ease of access to the $ 2 billion in cash.
The entities are — Wirecard Bank, Germany and Wirecard Card Solutions, united KINGDOM. Generally, the regulatory restrictions that obstruct the ease of access to this cash for general corporate purposes.
The company is at the centre of an investigation by the Financial Times on its accounting practices.
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