Wirecard: Questioning of Markus Braun continues – defeat for EY
In the criminal trial against three former managers of Wirecard AG, the questioning of ex-Wirecard-CEO Markus Braun continued.
The former CEO continued to insist on his innocence. The former payment service provider’s third party acquiring business plays a central role here. Braun’s defense strategy is to show that this so-called TPA business actually existed. According to Braun, a group around co-defendant Oliver Bellenhaus was responsible for the TPA business and embezzled funds from it.
However, the public prosecutor’s office and also the insolvency administrator of Wirecard AG, Dr. Michael Jaffé, assume that the third party business never existed. Markus Födisch, presiding judge in the criminal trial, also expressed doubts about Braun’s version: “Let’s wait and see what the taking of evidence reveals – we both know what the files reveal.”
Before that, however, Markus Braun’s questioning is expected to continue for three more days of the trial about the biggest German economic scandal of the post-war period.
Blow for auditor EY
Meanwhile, Wirecard AG’s long-standing auditor, Ernst & Young (EY), suffered a setback at the Stuttgart Higher Regional Court.
The Stuttgart judges rejected an application by EY to refuse to hand over audit documents relating to Wirecard to the insolvency administrator.
Instead, the decision, which was first reported by “Spiegel” magazine, was made as early as March 1st. EY had been responsible for the audit of Wirecard AG’s balance sheet for years andd is facing fierce accusations. Numerous aggrieved investors have already decided to sue the auditing firm for damages.
The decision of the Stuttgart Higher Regional Court is likely to contribute further to clarifying the facts of the case. We therefore continue to recommend that aggrieved investors assert their claims against EY.
In this context, aggrieved parties can file a lawsuit for damages or register their claims in the Capital Investor Model Proceedings (KapMuG) which have been opened in the meantime. In such proceedings, the claims of aggrieved investors are bundled and legal disputes are resolved in a single trial with a model plaintiff. The law firm Schirp & Partner represents the largest group of plaintiffs involved in the model proceedings and has applied to represent the model plaintiff in order to advance the KapMuG proceedings as quickly as possible and in the interests of the injured parties.
We will be happy to register you in the model proceedings. Further information on the Wirecard scandal and our action against EY can be found here.