The former leader of Wirecard would have admitted to having falsified
Stephan von Erffa, the former accounting chief of Wirecard, has reportedly admitted to falsifying documents in the case which has been going on for several years now, the Financial Times reported on Monday (July 4th) citing people familiar with the matter.
He was one of three defendants in a case brought by Munich prosecutors over the downing of the German tech company. A trial scheduled for later this year.
Von Erffa is the disgraced company’s first senior executive to admit wrongdoing since Oliver Bellenhaus, head of a Dubai subsidiary, surrendered in 2020.
According to the report, von Erffa is one of three company executives who have been charged with fraud, breach of trust and market manipulation.
He has so far denied any involvement in the wider fraud – he accused Wirecard fugitive Jan Marsalek in a preliminary investigation.
The police investigation reportedly found evidence that von Erffa had falsified documents that had been shared with KPMG and EY auditors, which were linked to a €50 million payment Wirecard received in 2018, believed to have come from an Asian escrow account, wired from a trustee at von Erffa’s request.
Then, a year later, KPMG was reviewing Wirecard’s accounts as part of an audit, the probe coming from a supervisory board after the Financial Times raised questions about possible balance sheet manipulation.
Investigators, examining von Erffa’s payment authorization, did not find it – so the accountant had fabricated one, according to reports.
It also comes as former Wirecard CEO Markus Braun, who has been in custody since July 2020, has been formally charged by prosecutors.
See also: Former Wirecard boss Markus Braun charged with fraud by German prosecutors
PYMNTS writes that he has been charged with fraud, breach of trust and accounting manipulation.
According to the investigation, he signed financial statements he knew were wrong for years from 2015 to 2018.
Additionally, former Wirecard director Bellenhaus has been charged.