Daily Management Review

Wirecard accused of involvement in marijuana fraud in USA


The US Department of Justice is checking the German fintech company Wirecard for involvement in financial fraud in the amount of $ 100 million associated with the online sale of marijuana, writes The Wall Street Journal, citing informed sources.

Web Summit via flickr
Web Summit via flickr
According to them, two businessmen have already been charged with fraud. They are charged with conspiracy with third-party payment operators and other persons in order to obtain confirmation of credit card payments for marijuana from American banks. For this, shell companies were used with accounts in offshore commercial banks, which, in turn, received significant commissions from operations.

Now the New York City Manhattan prosecutor’s office and the local branch of the Federal Bureau of Investigation (FBI) are investigating whether Wirecard played a role in the alleged conspiracy, acting both as a payment operator and an offshore bank, WSJ sources said. Authorities are also checking the possible involvement of some former and current Wirecard top managers.

In the United States, companies have not yet charged anyone. There are no materials on this subject in the electronic database of the US judicial system, the article says. However, according to court documents, when one of the two businessmen, an e-commerce consultant from Germany, was detained in California in March, a member of Wirecard's management proposed to help secure his release on bail.

A Wirecard spokeswoman declined to comment on this information.

The Justice Department’s investigation further exacerbates the many problems that a payment company faced, which had recently cost more than the country's largest Deutsche Bank.

The scandal surrounding Wirecard began to erupt at the end of June, when EY auditors were unable to confirm the presence of €1.9 billion in the trust accounts of the company in Philippine banks. The company's board of directors acknowledged that these funds may not have existed at all. As a result, the company was unable to publish the annual report and withdrew reporting for previous periods. Wirecard filed a lawsuit in bankruptcy proceedings. The company's shares within 5 days, when these events unfolded, fell in price by more than 90%.

source: wsj.com