@reelvolver: THE €1.9 BILLION THAT NEVER EXISTED. On June 18, 2020, Wirecard disclosed that its auditor could not obtain sufficient evidence for €1.9 billion supposedly held in trustee accounts—about one quarter of the company’s reported balance sheet. Wirecard said there were indications that spurious balance confirmations had been supplied to mislead the auditor. On June 22, the management board stated there was a prevailing likelihood that the €1.9 billion did not exist. Three days later, Wirecard filed for insolvency. German prosecutors confirmed that former CEO Markus Braun was arrested on June 23, 2020. The allegations against individuals remain matters for the courts. The failure extended beyond the company. ESMA later identified deficiencies, inefficiencies, and legal or procedural obstacles in Germany’s supervision and enforcement of Wirecard’s financial reporting. VERDICT: CONFIRMED BALANCE-SHEET COLLAPSE. INDIVIDUAL CRIMINAL RESPONSIBILITY IS DETERMINED BY THE COURTS. Sources: Wirecard Management Board Statement, June 22, 2020: https://wirecard.com/wp-content/uploads/2021/01/AH_2020_06_22_Statement-Board.pdf ESMA Wirecard Peer Review: https://www.esma.europa.eu/press-news/esma-news/esma-identifies-deficiencies-in-german-supervision-wirecard%E2%80%99s-financial Munich Public Prosecutor, June 23, 2020: https://www.justiz.bayern.de/gerichte-und-behoerden/staatsanwaltschaft/muenchen-1/presse/2020/4.php Original REELVOLVER score and sound design. Follow REELVOLVER for verified stories about money, power and consequences. #REELVOLVER #Wirecard #FinancialFraud #BusinessHistory #FinTech

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