The CEO of Wirecard, Markus Braun, resigned as the scandal bat units


Markus Braun, CEO of the society of technology and financial services Wirecard, poses at the company headquarters in Aschheim near Munich, southern Germany, on September 18, 2018. (Photo by Christof STACHE / AFP) (photo Credit should read CHRISTOF STACHE / AFP / Getty Images)CHRISTOF STACHE | AFP | Getty Images

The CEO of Wirecard, Markus Braun, has resigned in the midst of a scandal book growing, which has pushed the share price of the company.The payment company German said Friday in a brief statement that Braun had resigned “with immediate effect” and that James Freis would take its place as the interim CEO.

It happens just a day after Wirecard has admitted that auditors of EY had not found 1.9 billion euros ($2.1 billion) of cash on its balance sheet. The company has been forced to postpone its annual report 2019 – the fourth time she has done this year.

She also warned Thursday that, if it did not provide the consolidated financial statements by Friday, around 2 billion of loans may be requested. It is feared that the company does not become insolvent by the weekend.

The shares of the company have collapsed in recent days. On Thursday, the title Wirecard has fallen more than 60%, while on Friday, it fell by 45%.

Following the news of the resignation of Braun, the shares of Wirecard were somewhat compensated for their losses, but are still down about 34%.

The news follows a thorough investigation by the Financial Times on the accounting practices of the payment processor based in Munich. Among the allegations made by the newspaper, the office of Wirecard Singapore has used forged contracts and backdated to inflate the incomes, and the staff seem to be conspiring to inflate fraudulently the sales and profits of its subsidiaries of Dubai and Dublin, and potentially mislead EY.

The company has denied repeatedly the allegations made by the FT and even sued the newspaper for its coverage, accusing him of collusion with the short sellers. An external investigation conducted by the law firm RPC has, however, revealed no evidence of collusion with the players in the market.

Wirecard did not immediately respond to a request for comment when she was contacted by CNBC Friday, but in a video posted online, Braun – before his resignation – has stated that it “cannot be excluded” as Wirecard has himself been the victim of a fraud ” considerable “.

Wirecard said that the species missing reported by EY were supposed to be held in two asian banks. But Philippine banks – BDO and BPI have stated that It was not a customer and have alleged that documents had been falsified.

The output of the Braun brand a conclusion sudden and dramatic in his 18 years at the head of Wirecard. Braun had previously resisted calls from investors to step down, defending on several occasions the accounting procedures of the company.

Freis, the former head of compliance at the operator German stock Deutsche Boerse, was already called to join the team of management of Wirecard in a new role of compliance. Wirecard has announced the appointment of Freis to the board of directors on Thursday evening.

Bafin, the financial regulator German, has opened several investigations on Wirecard and searched his offices at the beginning of the month in the framework of an investigation on the direction.


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