Wirecard CEO Markus Braun resigned with immediate effect, according to a statement released by the payments provider on Friday.

Wirecard had previously delayed announcing its annual financial statements on a number of occasions and been advised by the auditors that there was insufficient evidence to prove the existence of bank balances of over €1.9 billion in trust accounts.

James Freis will replace Braun in the interim period, having joined Wirecard’s management board just last night.

Infografik Wirecard stock prices EN

On Thursday shares Wirecard plummeted more than half their value within minutes of the firm admitting it was not possible for it to publish a delayed annual report due to worrisome audit data.

Earlier that morning, Auditors Ernst and Young (EY) had identified “spurious balance confirmations” relating to cash balances on trust accounts that should have contained €1.9 billion ($2.1 billion).

Within 30 minutes of the statement’s release, company share prices plunged 66.5% to €35.

At the time, Braun, himself a major shareholder, claimed that he may have been the victim of a massive fraud. “It is currently unclear whether fraudulent transactions to the detriment of Wirecard AG have occurred,” Braun said. “Wirecard AG will file a complaint against unknown persons,” he added.

jsi/rt (dpa, Reuters)

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

US stocks extend rally as companies reports solid earnings

NEW YORK — Stocks are extending their rally on Wall Street Wednesday as investors assess the latest batch of solid corporate earnings reports and set aside fears about economic fallout from the virus outbreak that originated in China. Major indexes…

Vatican convicts ex-bank chief in property embezzlement scam

ROME — The Vatican’s criminal tribunal on Thursday convicted the former head of the Vatican bank and his lawyer of embezzling millions of euros in proceeds from the sales of Holy See-owned real estate, and sentenced them to nearly nine…

Tenants behind on rent in pandemic face harassment, eviction

BALTIMORE — Jeremy Rooks works the evening shift at a Georgia fast-food restaurant these days to avoid being on the street past dusk. He needs somewhere to go at night: He and his wife are homeless after the extended-stay motel…

Wall Street selloff resumes after Trump’s China tariff threat

(Reuters) – U.S. stocks fell on Friday after President Donald Trump threatened to impose new tariffs on Beijing over the coronavirus crisis, while business warnings from Amazon.com and big oil firms highlighted the pain inflicted by global lockdowns. Trump’s threat…