Wirecard's Downfall
Which German payment service provider went bankrupt in June 2020?
Wirecard
What types of fraudulent activities were involved in the Wirecard scandal? (two)
Financial document falsification and money laundering.
Which auditing firm failed to uncover the Wirecard fraud?
Ernst & Young (EY)
How much money did Wirecard admit was likely non-existent, leading to their bankruptcy?
1.9 billion euros
What financial regulatory agency failed to investigate the Wirecard allegations?
The German financial regulator, BaFin.
Which political figure lobbied for Wirecard, involving Germany’s financial relationship with China?
Chancellor Angela Merkel
What did Wirecard's executives admit regarding the company's financial situation?
They admitted that almost 2 billion euros in assets were likely non-existent.
What was the role of journalists in the Wirecard scandal?
Journalists who reported on Wirecard's fraudulent dealings were met with complaints instead of support.
How many qualified auditors did Germany's financial regulator have?
Only 5
Who was the former CEO of Wirecard, now in custody due to the scandal?
Marcus Braun
Which company’s auditing firm repeatedly gave Wirecard a seal of approval despite rumors of fraud?
Ernst & Young (EY)
What did the German inquiry committee find about the government's role?
The government lobbied for Wirecard's interests in China.
What were Wirecard's primary business operations before the scandal?
They were an electronics payment service provider and operated a bank in Germany
What was one of the significant problems discovered in the investigation regarding state agencies' involvement in the scandal?
Some officials were trading Wirecard shares instead of properly investigating the company.
What did the German parliamentary inquiry committee find about the role of the state agencies in the Wirecard scandal?
They found that multiple state agencies failed to do their jobs properly.