The German prosecutor’s office has launched an investigation into EY’s auditors, who were auditing the accounts of the bankrupt German financial firm Wirecard. It thus responds to a complaint that the auditors accuse of criminal activity. Reuters reported.
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A spokeswoman for the Munich prosecutor’s office warned that the opening of an investigation on the basis of this complaint was a procedural measure. “We continue to conduct our investigations throughout the intricate case of Wirecard and focus on a number of suspects,” she said. She added that the outcome of these investigations remained open.
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EY said on Friday that it was not aware of any signs of criminal activity by its auditors at Wirecard. “EY has supported the investigation of the relevant authorities since the beginning and will continue to do so in full,” the company added.
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EY has been a long-time auditor of Wirecard. In June this year, EY’s auditors refused to sign Wirecard’s financial statements for last year, saying they could not confirm the amount of 1.9 billion euros (50 billion CZK) that was supposed to be in the company’s accounts. Wirecard subsequently admitted that the money probably never existed and declared insolvency.
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The German prosecutor’s office has already detained some former Wirecard executives, including Chairman Markus Braun, on suspicion of organized fraud, embezzlement, accounting fraud and stock market manipulation.
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Wirecard was founded in 1999 and focused on payment processing and financial services. In Germany, it was considered a promising player in the fast-growing financial services market, given as a model of domestic success and described as the star of the German technology sector. The fall of the company also affected clients in the Czech Republic.
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