London Daily

Focus on the big picture.
Sunday, Oct 19, 2025

Wirecard: Germany's biggest fraud trial to start underground

Wirecard: Germany's biggest fraud trial to start underground

The once publicly listed company worth billions had Angela Merkel lobbying on its behalf.
Germany's biggest fraud case gets underway as the former executives of payments company Wirecard stand trial after a scandal that rocked the German establishment.

In a new, bomb-proof court built 5m (16ft) underground to try terror suspects, CEO Markus Braun will appear.

He, and two other Wirecard managers, Oliver Bellenhaus and Stephan von Erffa, stand charged with fraud and market manipulation offences for their alleged role in the collapse of the payments company.

They could be jailed for up to 15 years if convicted.

Wirecard was at one point valued at $28bn (£22.9bn). It rose to prominence from being a porn and gambling payments processor to a respected tech company, listed on the Frankfurt Stock Exchange and a constituent company of the Dax index of German blue chip companies.

The prosecution has argued that Wirecard management invented company revenue to trick investors and creditors.

Mr Braun has been in custody since 2020 and the company has admitted €1.9bn (£1.63bn) went missing, but he denied embezzling money and accused others of running a shadow operation without his knowledge.

He was arrested for a second time in July 2020 on suspicion of being part of an organised criminal enterprise that obtained more than €3bn from creditors in a scheme based on faked accounts.

The Wirecard fall was meteoric. It became the only Dax member to file for bankruptcy, owing creditors nearly $4bn (£3.28bn). The downfall shook German politics and regulators and hit the country's business reputation.
Advertisement

The company counted former German chancellor Angela Merkel as a supporter as she lobbied for Wirecard in China as it pursued an acquisition. For a short time she considered bailing the firm out.

Current chancellor Olaf Scholz also came in for criticism as he served as finance minister under Ms Merkel.

Criticism had been levelled at Mr Scholz for a lack of oversight of the company during his finance tenure. In the wake of the scandal he bolstered the powers of the German financial regulator, BaFin, and brought in new leadership of the watchdog. BaFin's head as well as the boss of Germany's accounting watchdog had stepped down, following the company's demise.

Wirecard had successfully lobbied German authorities not to investigate the company and instead look into the investors and journalists making claims of wrongdoing.

Both Ms Merkel and Mr Scholz have said they are not to blame for the scandal.

Former executive Mr Bellenhaus became a key witness after turning himself in to the German authorities in 2020 while Mr von Erffa expressed regret about the Wirecard events, but denied orchestrating them. His lawyer said to Reuters that Mr von Erffa did not want to comment on the charges.

Not on trial is Wirecard's former chief operating officer Jan Marsalek, a key suspect and currently an international fugitive with unknown whereabouts.

A verdict is not expected before 2024 at the earliest and there are hundreds of court dates scheduled until the end of 2023 to hear the case.
Newsletter

Related Articles

0:00
0:00
Close
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
U.S. Revokes Visas of Foreign Nationals Who ‘Celebrated’ Charlie Kirk’s Assassination
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
DJI Loses Appeal to Remove Pentagon’s ‘Chinese Military Company’ Label
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Australian Prime Minister’s Private Number Exposed Through AI Contact Scraper
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
China’s lesson for the US: it takes more than chips to win the AI race
Australia Faces Demographic Risk as Fertility Falls to Record Low
California County Reinstates Mask Mandate in Health Facilities as Respiratory Illness Risk Rises
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
×