Wirecard says it cannot rule out ‘fraud of considerable proportions’

By Reuters On Jun 19, 2020

FILE PHOTO: The headquarters of Wirecard AG, an independent provider of outsourcing and white label solutions for electronic payment transactions is seen in Aschheim near Munich, Germany April 25, 2019. REUTERS/Michael Dalder

(Reuters) – German payments company Wirecard AG (DE:WDIG) said on Friday it cannot be ruled out that the company has become the “aggrieved party” in a case of “fraud of considerable proportions”.

The video statement issued by Wirecard’s management board follows the company’s auditor refusing to sign off its 2019 accounts over a missing $2.1 billion. Its shares dropped by around 60% on Thursday as the company said the delay could cause billions in loans to be called in as soon as Friday.

Auditor EY was unable to confirm the existence of 1.9 billion euros ($2.1 billion) in cash balances on trust accounts, representing around a quarter of its balance sheet, Wirecard said on Thursday.

“At present it cannot be ruled out that Wirecard AG has become the aggrieved party in a case of fraud of considerable proportions,” Wirecard Chief Executive Markus Braun said in the video statement released on Friday.