"Is it immoral to uncover fraud? "

Sources: - Isaan News, and some confidential sources

Part 2 of the Wirecard story, shortseller, public prosecutor's office in Munich, the federal government, the chancellery ... (klick hier fuer  Deutsch)

Report of a so-called shortseller, who for security reasons would not like to be named

Research back then (2010) showed that the insolvent payment service provider from Aschheim illegally postponed sales from the gaming industry, earned 3 digit millions of euros on porn websites, supported tax evasion to a very large extent (with the help of a hole in the credit card processing processes and the Wirecard Invention of the first virtual credit card) and laundering.

In 2010, the public prosecutor and financial market regulator Bafin were contacted. The prosecutor suspended the Wirecard investigation two years later due to lack of evidence.


Were there higher (money) interests involved?

Did some "celebrities" get cold feet?

 It all came back up on the day of Wirecard's bankruptcy.

Before, no one would have believed that Wirecard would defraud billions. Now you listen. Almost all media believed the fairy tale told by Wirecard about the evil shortseller that spreads untrue rumors and thus manipulates courses. Shortsellers were labeled as fraudsters, but Wirecard was protected against them.

 As early as 2008, Wirecard was apparently not doing the right thing.

The analysis of the annual financial statements and the subsidiaries before 2008 revealed astonishing results. The Wirecard Group generated two thirds of its sales in Germany, but posted losses there. The profits came from Gibraltar and the British Virgin Islands. Gambling providers are typically located there. In addition, Wirecard's margins were up to ten times higher than those of its competitors. That was strange.

 The weak cash flow was inflated, Wirecard's competitors and partners only had one explanation, it was clear that fraud was at stake here.

 At the end of 2008, on the verge of a Wirecard party at the Munich Oktoberfest, confirmation that Wirecard was doing illegal business.

Almost the entire payment industry knew this, said Wirecard's American business partners. They drank champagne and enjoyed themselves that nobody in Germany seemed to know about the illegal practices. They were surprised that no one suspected anything, even though Wirecard was already on the stock exchange at the time.

 Although you already knew that at the time - why was it only in 2010 that the prosecutor filed a complaint about money laundering?

Solid evidence was needed. In spring 2010, an informant from the payment industry came out unexpectedly.

 He reported that Wirecard had to pay Mastercard fines of over 16 million euros for unauthorized re-encoding of credit card payments in the area of ​​online gambling.

A payment request has recently been received by Wirecard. After that, it was believed that there was enough evidence. Criminal complaints about money laundering were filed with the Munich public prosecutor's office (the same one that is being investigated today) by email. Nothing happened for a month. The criminal complaint was filed again, this time in paper form and by post.

 Shortly afterwards, Wirecard was also reported for market manipulation by the Bafin and the public prosecutor. What happened to this ad?

To date, it is not known whether the Bafin has even followed up on the criminal complaint.

The public prosecutor's office keeps all files under lock and key, the easiest way to keep out of the affair.

How do you explain that fraud has not been noticed over the years?

 It is still inexplicable that the public prosecutor's office closed the investigation into money laundering that started in 2010 in 2012. The lawsuit was well-founded, including a detailed explanation of how to circumvent US gambling laws using the flower shops.

A second alleged letter from Mastercard, which was found on the Internet, also raised suspicions that payments had been illegally transcoded. But the prosecutor never checked whether the Mastercard letter was authentic. It would be a pleasure to inspect the investigation files: What exactly did the prosecutor do at the time? Why hasn't the alleged fraud been exposed?

 Shouldn't big investors have noticed something later? How did Wirecard get into the Dax?

The Dax climb should never have happened. In terms of content, hardly anyone in Germany has dealt with the allegations. Neither authorities nor analysts have adequately investigated these. Instead, Wirecard critics have always been rigorously smashed.

 A witness (shortseller) received an uninvited visit from three men in his office, who threatened him massively and demanded that he immediately close his short position.

Wirecard has defamed the statements of shortsellers as lies for years. That was apparently enough to convince the authorities. But it is also a fact: banks, funds, analysts and auditors make sales by investing their customers' money in listed companies or advising companies. Bankruptcy like Wirecard means zero sales. Nobody likes to saw off the branch on which they are sitting.

 Could someone have sponsored the company?

 You do not know whether someone has a protective hand over the company in the background, but today you cannot rule it out when it comes to Wirecard.

 Shortseller has been the loser for years against Wirecard. How did Wirecard proceed?

You do not know whether others have also had an uninvited visit. However, Wirecard hired lawyers, forensic experts, data specialists and experts with the aim of portraying critics as liars and course manipulators.

 Wirecard also filed criminal charges in 2008 for course manipulation against shortsellers. Representatives of the company then had a lively exchange with the prosecutors who were investigating shortsellers. Once they submitted a detailed crime plan to the public prosecutor's office, which they allegedly received anonymously. In it, people who demonstrably do not know each other plan to target the stock price. Even the public prosecutor suspected that this could be a fake.

 Wirecard got away with it anyway. Shortsellers were also spied on in 2015. Others also report such methods. Wirecard must have built the right machinery.

A machine that was mainly served by dark shops from Eastern Europe, with call centers and dubious companies. Even today, these types of people threaten insider knowledge.

 There are many reservations about shortsellers. Among other things, that they benefit from the failure of companies. Why do these short sellers think important for the capital market?

There is nobody who analyzes companies more critically than a shortseller. Journalists don't either, Dan McCrum of the Financial Times (FT) is an absolute exception. The reason is money. It is a lot of work to uncover fraud. There is no wage for that and for FT the Wirecard story will probably never pay off financially.

 For example, Thielert AG's balance sheet fraud was uncovered in 2008. The CEO had manipulated his profits upwards for years with fictitious invoices - without the auditor wanting to have noticed anything. Shortsellers made a profit from it, then it was revealed.

Many consider this to be immoral.

It is immoral if, as at Wirecard, a share price is artificially driven up by balance sheet fraud and illegal sales. The task as a shortseller is to uncover such machinations. Sure, then the price drops and the shortseller makes a profit.

But how can it be immoral to uncover a scam? Shortsellers thus protect investors from even greater losses. In spring 2010, Wirecard's market value was just over a billion euros. Had the fraud been exposed at that time, a market value of more than 20 billion euros would never have been reached and investors would not have made such immense losses overall.

 It is, of course, immoral and criminal if false rumors are spread to affect stock prices. However, this rarely happens in practice: untruths can quickly be invalidated by the company. Even if the allegations are correct, companies have the opportunity to correct mistakes without suffering much damage. In the USA or Great Britain, unlike Germany, the stock analyzes and assessments of short sellers receive a lot of attention.

 Shortseller error?

Using a simple Google search, stock analyzes and buy recommendations for other stock market letters can still be found that were published at the same time and were not included in the Bafin report on behalf of the public prosecutor at the time. These publications are likely to have had an impact on the course. The reports should also have other influences and exclude reports from stock market letters. In addition, ad-hoc announcements from companies or investor conferences were ignored. In one case, the assessors took the opening price on the right day, but the closing price on the day after that. In fact, the price demonstrably fell on that day by 4.41 percent - despite the buy recommendation of the stock market letter.

 What did that mean for Wirecard?

 Back then, Wirecard learned how easy it is to silence critics with the help of the authorities. Finally, Wirecard had the authorities under control so well that, according to further reports from the FT about massive inconsistencies in Wirecard businesses in Asia, the beginning of 2019 even banned shortsellers because of the risk of price manipulation - instead of simply following up on the information.

 Kremlin is unsuspecting at the main accused of Marsalek. But Marsalek did not act alone, it is a whole criminal band that was and probably is still here.

Former sales manager Jan Marsalek is considered a key figure in the Wirecard fraud scandal. The problem: The Austrian manager disappeared without a trace. A media report suggests that he is in the care of the Russian secret service. The Kremlin reportedly knows nothing.

 In the Wirecard fraud scandal, the former head of sales, who disappeared without a trace, may have gone underground in Russia, according to a media report. But the Kremlin says it knows nothing.

 "No, nothing is known," said Kremlin spokesman Dmitri Peskow to a report in the "Handelsblatt", according to which the Austrian manager Jan Marsalek is said to have fled to Russia. The Russian authorities are not pursuing Marsalek.

 Accordingly, there is neither a criminal case against the manager in Russia nor an extradition request. Russia also has no information about its whereabouts.

Marsalek, born in 1980, is the key figure in the Wirecard affair. Until the manager was fired without notice in June, he was responsible for day-to-day business at the financial services provider worldwide. He was originally suspected in the Philippines, and according to the Philippine government, he is married there - something the colleagues at the Aschheim headquarters were not aware of. The government in Manila later admitted that the data on entry and exit in the national immigration authority's computer system was falsified. According to various - all unconfirmed - media reports, Marsalek is said to have contacts with Russian secret services.

Federal government is silent

There was no official information about Marsalek's whereabouts on Monday from the German or Austrian side. At the federal press conference, a spokesman for the Federal Foreign Office merely stated that the media reports had been noted and were not commenting on speculation or ongoing investigations.

 The Dax group from the Munich suburb of Aschheim initially granted presumed air bookings totaling an estimated 1.9 billion euros in June and then filed for bankruptcy. The alleged bogus transactions largely ran through alleged subcontractors in the Middle East and Southeast Asia (see Wirecard-news.com). Wirecard's core business was the processing of card payments as a link between credit card companies and retailers.

Today, the Munich public prosecutor's office has been covering himself over all the years when it was suspected that Wirecard was not doing the right thing.

Does the question remain open ... yes, which question?

 "Unique business thriller " , Wirecard scandal soon as a feature film?

Guttenberg advertised with Merkel - Chancellery apparently helped Wirecard in China.

 "One has to be guilty," Wirecard chat logs popped upů.

All this and more at http://wirecard-news.com  an ISAAN News presentation

Source:Isaan News BdP 20.2.2020-10AM

Karl Theodor of Guttenberg, former German Minister, was a Key advisor to Wirecard's Braun and Marsalek, advised also Finanzminister Olaf Scholz and the german Bundeskanzlerin Angela Merkel!  ...more