Interesting news - WireCard suspect accounting practives revealed!

[happyjohn]

I just came across this article from the Financial Times about WireCard. It actually confirms what other users on this forum already have reported for some time ago and what was written before.

From inside its grey corporate headquarters in Aschheim outside Munich, Wirecard projects an image of one of Germany’s leading business success stories, a fintech champion to rival software giant SAP. After a decade of breakneck growth, Wirecard has become a favourite among investors, with a market capitalisation greater than Deutsche Bank, placing the company in the prestigious Dax 30 index.

Yet Wirecard’s seemingly irresistible rise has been plagued by intermittent controversy about its accounting and business practices. Earlier this year, white-collar crime investigators raided Wirecard’s offices in Singapore multiple times in connection with allegations that sales and profits were invented at numerous subsidiaries across Asia. Edo Kurniawan, the company’s head of international reporting, was named among six suspects.

AND

Yet there are strong indications — likely to attract attention from auditors and regulators — that much of the payment processing attributed to these 34 clients could not have taken place.

source: Wirecard’s suspect accounting practices revealed

I believe this is the end of story for WireCard AG for now. But it's going to be interesting to see what direction this will take.

 

[Spinat]

Ouch it's a shame I had a lot of trust in WireCard in the past and they managed all my needs professional damn..!!

 

[bastard]

nice share but I agree it is a shame and sad story from such a big payment processor like WireCard.

 

[Martin Everson]

They may be finished once the law suits start. Their actions if true have mislead investors. Just checking if their is any wirecard in my pension portfolio's anywhere but doubt it otherwise......

WIRECARD LOSSES ALERT: Bernstein Liebhard LLP Announces an Investigation of Wirecard AG

Bernstein Liebhard, a nationally acclaimed investor rights law firm, is investigating potential securities fraud claims on behalf of shareholders of W

www.businesswire.com

 

[Tax Cow]

A truly sad story. The bank itself is great; def. among top 3 in the EU for the typical use-case of OCTF audience, if we exclude the 500K+ deposit @ 0% interest alternatives.

If the authorities play fair, the fines should be proportionate to not put it out of business, as they were in the case of WFC account fraud scandal. Wells Fargo misled investors on a similar scale. Millions of new accounts were opened while the OPEX remained the same - investors and analysts who read the reports were sure WFC is going to be a moon rocket, until the fraud was revealed.

 

[Edge]

Oh man .. This is not gonna end well ...

How many third parties like EMIs and card providers use wirecard services ? like just of the top of my head, paxum and paysera cards are issued by wirecard .. maybe even payoneer, I know for sure payoneer uses them for their global transfer service or whatever they call it ..

If wirecard goes down, it will be trouble for everybody ...

 

[lavel]

I smell a huge crash once Wirecard is gone and left are the EMI's that depend on their card network!

 

[Edge]

Not just EMIs and card providers, half the payment processors (payment gateway providers) in europe use wirecard services.

 

[nitehawk]

Interesting. Financials audited by E&Y most likely 95% correct and not misleading investors but companies are claiming no relationship. Seems like some darks in play.

 

[BlueMist]

In light of this news, would it be a bad idea to open corporate account with Wirecard Bank these days?

 

[Sols]

Wirecard have been doing dodgy things like this and worse for 10+ years, and have been getting caught from time to time. At worst, they will be slapped with some fines.