Wirecard scandal: Enron of Germany’s €3.5 billion

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Wirecard scandal: Enron of Germany’s €3.5 billion

The Wirecard scandal have flabbergasted Germany, exemplifying it with the Enron scandal that happened in USA after a massive accounting fraud scheme was revealed in 2001. Wirecard has filed insolvency last month after it acknowledged missing of a quarter of its balance sheet when its long serving auditors made an outcry of 1.9 billion euros cash meant to be sitting in trustee accounts at two Philippine banks went missing from its accounts. Former CEO Markus Braun has been arrested on suspicion of falsifying accounts and market manipulation.

Wirecard scandal debacle has caused uproar after finance ministry documents revealed Scholz was told as early as February 2019 of misconduct suspicions. The mortifying revelation of German Chancellor, Angela Merkel, call frothing Wirecard to China during delegation in 2019, when the company was making inroads to Chinese market.

Visa and Mastercard executives have been concerned about issues with Wirecard leading to substantial fining of each in excess of USD $10 million more than a decade ago for suspicious transactions that included miscoded gambling transactions, high numbers of stolen card purchases and reversed transactions. Credit card companies can levy fines to payment processors for too many disputed transactions or disguising the true nature of sales.

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