CEO of wirecard is detained! Exaggerate the company’s assets up to $2.1 billion

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Markus Braun
Sina science and technology news in the afternoon of Beijing time on June 23, according to foreign media reports, German prosecutors said in a statement today that Markus Braun, the former CEO of wirecard, a German payment giant, had been detained for exaggerating the company’s balance sheet and revenue to make the company more powerful and attractive to investors and customers.
In a statement Thursday, wirecard said Ernst & young, an external auditor, was “unable to verify” the 1.9 billion euros ($2.1 billion) of cash the company should have deposited with Asian banks. That’s about a quarter of wirecard’s balance sheet. There are reports that there are indications that the wirecard trustee made a false balance confirmation to deceive the auditor.
As a result, wirecard CEO Brian, who has been at the helm for 18 years, left on Friday to be replaced by James Freis, a former compliance officer at the German Stock Exchange. Yesterday, wirecard also issued a statement saying that the missing 1.9 billion euro cash balance marked by Ernst & Young’s auditors may not exist at all.
German prosecutors also said today that Braun turned himself in on Monday night and was referred to a judge on Tuesday who will decide whether he will continue to be detained.
In leaving, Braun hinted that wirecard itself could be the victim of fraud. He also said he chose to leave because he didn’t want to burden wirecard.
“The confidence in the capital market has been shaken for the company I have managed for 18 years,” he said. In my decision, I respect the fact that the CEO is responsible for all business transactions. ” (Li Ming)