U.S. DoJ examining Wirecard as part of probe into alleged bank-fraud conspiracy
The U.S. Department of Justice is examining whether German
payment company Wirecard AG (WDIG.DE) played a critical role in an alleged $100
million bank-fraud conspiracy connected to an online marijuana marketplace, the
Wall Street Journal reported on Wednesday.
The Manhattan U.S. Attorney’s office and the New York field
office of the Federal Bureau of Investigation are examining whether Wirecard
played a role in the alleged conspiracy by serving as both a payment processor
and an offshore merchant bank, the Journal said, citing people familiar with the
matter.
The authorities are also considering the possible role of
several former or current top Wirecard executives, according to the WSJ.
law enforcement official familiar with the department’s
Wirecard investigation confirmed the WSJ report, but declined to elaborate.
Wirecard filed for insolvency last month, owing creditors 4
billion euros ($4.5 billion) after disclosing a 1.9 billion euro hole in its
accounts that its auditor EY said was the result of a sophisticated global fraud.
Two businessmen have already been charged in the alleged
bank fraud, accused of conspiring with third-party payment processors and
others to trick U.S. banks into approving credit-card payments for marijuana
products, according to the WSJ and documents filed with the Southern District
of New York dated April 27.
A Justice Department spokesman declined to comment “at this
time.” Representatives for the FBI and Wirecard also declined to comment.
The implosion of Wirecard, a financial technology company
once seen as one of the hottest prospects in Europe, has led to political
finger-pointing in Germany and new investigations into potential financial
skullduggery from the Philippines to Mauritius.
German prosecutors this month widened their investigation
into the company to include suspected fraud, in addition to market manipulation
and falsifying of accounts.
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