Thursday, July 9, 2020

More Wirecard Issues

This morning, if you watch business news on Germany's N-TV....Wirecard came up.

Over the past month, Germany's Wirecard has been in the news a good bit.  An audit was performed and 1.9-billion Euro was missing from the bank.  After some researcher, the audit guys came to say that it actually never was there.  In some weird way, it was false assets to make people believe that Wirecard was bigger than they claimed.  At least that's the current story. 

So this morning's news goes to a US audit going on, and this belief that a marijuana supply company (actually just one single German living in the US), and that his 'empire' was built on transactions via Wirecard.  The US audit people want to ask more questions and think that Wirecard managers knew of the illegal business going on, and just looked the other way.

Off-shore accounts?  Yes, that's part of the deal, and you can imagine....tax-evasion is going on.....from both the US and Germany.

The problem here, if you think about it....the US audit folks will look at this structure, and start to ask about other Wirecard business accounts in the US, and dig into other money-laundering or illegal business operations.

For the German managers who could see questionable problems and did nothing?  Well, this will turn into a big legal issue over the next year, with court time.

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