BERLIN (AP) — Investigators searched the headquarters of German fee methods supplier Wirecard and 4 different places Wednesday as a part of their probe of an accounting scandal that led to the arrest of the corporate’s longtime CEO and compelled the agency to file for chapter safety.
Twelve prosecutors have been supported by 33 law enforcement officials in addition to police IT consultants in Wednesday’s raids, Munich prosecutors mentioned. 5 places have been searched — three in Germany, together with Wirecard’s headquarters within the Munich suburb of Aschheim, and two in neighboring Austria.
Markus Braun, an Austrian who had led Wirecard since 2002, was arrested final week on suspicion of incorrect statements of information and market manipulation, after which launched on bail. He had resigned as CEO days earlier, shortly after Wirecard mentioned auditors could not discover accounts within the Philippines that have been presupposed to include 1.9 billion euros ($2.1 billion).
His arrest got here hours after the corporate mentioned it had concluded that the cash in all probability did not exist. Traders worn out a lot of Wirecard’s share value over the previous two weeks, and the corporate mentioned Thursday it was submitting for insolvency, a type of chapter safety.
Prosecutors have mentioned they think Braun of inflating the corporate’s monetary place utilizing sham revenue, “possibly in collaboration with further perpetrators,” to be able to “painting the corporate as financially stronger and extra engaging for traders and shoppers.”
Wirecard’s headquarters was already searched on June 5 in an investigation of narrower allegations of market manipulation, involving suspicions that managers may have given “misleading signals” for the corporate’s share price in statements in March and April, prosecutors mentioned.