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EX-Wirecard CEO arrested again as prosecutors suspect $3.7bn fraud

EX-Wirecard CEO arrested again as prosecutors suspect $3.7bn fraud

Mubasher: German prosecutors have rearrested the former CEO of Wirecard, Markus Braun, in Munich and detained two other unnamed former executives.

Authorities suspect that Wirecard knew it had been lossmaking since 2015 and that its management conspired together in an organised commercial fraud of nearly EUR 3.2 billion ($3.7 billion), CNBC reported.

The suspects borrowed funds worth about EUR 3.2 billion from lenders in Germany and Japan and the cash is probably lost due to Wirecard’s bankruptcy, the prosecutors said.

The German payment processer collapsed into insolvency last month, just a week after announcing a cash sum of  EUR 1.9 billion was missing from its accounts, nearly a quarter of its consolidated balance sheet.