The former boss of Wirecard, the German payments firm where almost €2bn has gone missing, has been released on bail by the police.
Markus Braun (pictured) posted €5m set by a Munich court and walked free one day after turning himself in on Monday evening and being arrested by police, his lawyer Alfred Dierlamm told Reuters.
However, the warrant against the 50-year-old Austrian has not been lifted, he remains under investigation by prosecutors who suspect him of misrepresenting Wirecard’s accounts and falsifying income.
Braun (pictured) had resigned as chief executive of Wirecard on Friday and was replaced by James Freis, who joined from Deutsche Börse the day before.
Wirecard has hired investment bank US Houlihan Lokey to raise finance ahead of the end of June, when it is due to seek fresh capital from its banks.
The fintech is battling an accounting crisis that has put its survival at stake. Ernst & Young, Wirecard’s auditors refused to sign off on its 2019 accounts after they could not find a missing €1.9bn in its accounts. The firm finally admitted on Monday that the money probably does not exist.
Prosecutors allege that Braun inflated company sales “possibly in collaboration with further perpetrators” with an aim to “portray the company as financially stronger and more attractive for investors and clients.
Wirecard, a former champion of Germany’s tech sector, has seen its shares fall 85% this year to €15.50 in Wednesday morning trading.
The firm has been fighting whistleblower allegations of accounting fraud for more than 18 months. A forensic audit by KPMG, which Wirecard’s supervisory board commissioned after the Financial Times made a series of allegations about how it documented sales, failed to allay concerns when its findings were published in April.
76.4% of retail investor accounts lose money when trading CFDs with this provider.
Total Number of Stocks & Shares+2000
Charge per Trade
FTSE 100Zero Commission
Users should remember that all trading carries risks and users should only invest in regulated firms. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Galina is a Hubspot-certified Technical Writer with over 10 years of experience in working with Fortune 500, private investment, banking, FOREX and niche tech companies as well as crypto and blockchain startups. She has a solid background in FinTech and blockchain technology.