DOJ Looks Into Possible Wirecard Role In Purported $100M Bank Fraud
Adding to the series of legal difficulties for Wirecard, the
Justice Department is looking to see if the German payments company had an
essential part in a purported $100 million bank fraud case involving a digital
cannabis firm, The Wall Street Journal reported, citing unnamed sources.
Two individuals have been charged in the purported fraud who
allegedly worked with payment processors, among others, to confuse American
banks into giving the green light to card payments for cannabis items, the WSJ
reported.
Wirecard served as an intermediary for digital businesses,
with the inclusion of electronic payments processing for travel firms and
merchants, among others. The company, however, has faced investor claims that
it made fake revenue with shell firms and third parties or purported to have
funds that “wasn’t there” per the news outlet.
The FBI’s New York field office and the U.S. Attorney’s
office in Manhattan are looking into whether Wirecard had a function in the
purported conspiracy as foreign merchant bank and payment processor per unnamed
sources in the WSJ report. Two unnamed sources also claimed that are
authorities are looking into the potential participation of a number of present
or past executives from the German payments company.
Wirecard, however, has not surfaced in public court filings
or faced charges in the bank fraud case in the United States per the report.
On Tuesday (July 7), the administrator set by the court who
was directing the insolvency of Wirecard AG noted that a number of investors
have expressed interest in purchasing what remains of the German payments firm.
Michael Jaffe said in a statement per a past report, “The aim is to find timely
investor solutions in the interest of creditors, employees and customers.”
And a 46-year-old Wirecard executive was arrested in Germany
for his alleged key role in a large global purported fraud case involving the
firm. The individual was in control of Wirecard’s CardSystems Middle East and
operated the division mainly from his Dubai apartment.
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