Ex-Wirecard boss on trial in fraud case that shamed Germany

Dec 8, 2022, 2:45 AM | Updated: 11:07 am
Former Wirecard CEO Markus Braun sits in the dock in the courtroom at the start of the trial agains...

Former Wirecard CEO Markus Braun sits in the dock in the courtroom at the start of the trial against the former CEO and two co-defendants at Munich Regional Court 1 Munich, Germany, Thursday, Dec. 8, 2022. The trial is being held in an underground courtroom next to the Munich-Stadelheim correctional facility. Almost two and a half years after the collapse of the Wirecard Group, the criminal trial in what is believed to be the biggest fraud case in German post-war history began on Thursday. (Peter Kneffel/dpa via AP)

(Peter Kneffel/dpa via AP)

BERLIN (AP) — The former chief executive of financial services company Wirecard and two other ex-managers went on trial Thursday over the firm’s collapse in what has been described as the biggest case of fraud in post-war Germany.

Wirecard was long the darling of Germany’s fintech scene until it filed insolvency proceedings in 2020, saying 1.9 billion euros that had been on its balance sheet could not be found.

The case exposed flaws in Germany’s financial oversight bodies and embarrassed then-Chancellor Angela Merkel, who had lobbied on behalf of the company during a visit to China.

Prosecutors in Munich allege that ex-CEO Markus Braun signed off on financial reports he knew were false. The firm allegedly booked nonexistent revenue it attributed to multiple partnerships in other countries and used fake documents to show it had funds that it did not, they said.

The firm’s former head of accounting and the managing director of a Dubai-based subsidiary are also on trial.

The fraud cost banks 3.1 billion euros in loans and writedowns, according to prosecutors.

One of the central figures in the case, the company’s former chief operating officer Jan Marsalek, remains on the run.

Braun’s lawyers has said the charges against his client are “seriously flawed” and “assumed a false picture of the facts.” They claim Braun was unaware of machinations by others.

The complex trial is expected to run for more than a year.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

India’s G-20 energy meet to balance renewables, fossil fuels

BENGALURU, India (AP) — Over 500 energy industry heavyweights and 30,000 participants will descend on the southern Indian city of Bengaluru on Monday to discuss the future of renewables and fossil fuels at India Energy Week — the first big ticket event of the country’s presidency of the Group of 20 leading economies. Speakers, including […]
22 hours ago
FILE - Mega Millions lottery tickets and a wager slip are displayed, Friday, Jan. 6, 2023, in Derry...
Arizona Sports

Drawing nears for $700M Powerball prize, 10th biggest in US

Another huge lottery jackpot will be on the line Saturday for players willing to put up $2 vs. daunting odds of actually winning the prize.
22 hours ago
Chinese spy balloon flies above in Charlotte NC, United States on February 04, 2023. The Pentagon a...
Associated Press

US downs suspected Chinese spy balloon off the Carolina coast

The United States on Saturday downed a suspected Chinese spy balloon off the Carolina coast after it traversed sensitive military sites.
22 hours ago
A man works at an avocado orchard in Santa Ana Zirosto, Michoacan state, Mexico, Thursday, Jan. 26,...
Associated Press

Route to Super Bowl dangerous for Mexico’s avocado haulers

SANTA ANA ZIROSTO, Mexico (AP) — It is a long and sometimes dangerous journey for truckers transporting the avocados destined for guacamole on tables and tailgates in the United States during the Super Bowl. It starts in villages like Santa Ana Zirosto, high in the misty, pine-clad mountains of the western Mexico state of Michoacan. […]
22 hours ago
Associated Press

Iraqi currency crash halts after meeting with U.S. official

BAGHDAD (AP) — Iraq’s currency ended its nosedive after a meeting between the Iraqi Central Bank head and a top U.S. Treasury official. Under Secretary of the Treasury for terrorism and financial intelligence Brian E. Nelson said in a statement Saturday that he had met with Central Bank of Iraq Governor Ali al-Allaq in Istanbul […]
22 hours ago
Associated Press

Gas prices dip in NJ, around nation as cold weather returns

TRENTON, N.J. (AP) — Gas prices dipped in New Jersey and around the country at large as cold weather descended on parts of the nation following an unusually warm January. AAA Mid-Atlantic says the average price of a gallon of regular gas in New Jersey on Friday was $3.42, down three cents from last week. […]
22 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Prep the plumbing in your home just in time for the holidays

With the holidays approaching, it's important to know when your home is in need of heating and plumbing updates before more guests start to come around.
(Desert Institute for Spine Care photo)...
DESERT INSTITUTE FOR SPINE CARE

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
(Photo via MLB's Arizona Fall League / Twitter)...
Arizona Fall League

Top prospects to watch at this year’s Arizona Fall League

One of the most exciting elements of the MLB offseason is the Arizona Fall League, which began its 30th season Monday.
Ex-Wirecard boss on trial in fraud case that shamed Germany