German prosecutors probe Wirecard for money laundering (updated)

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09/07/2020 11:30

* Munich prosecutor investigates Wirecard after criminal
complaints
    * Wirecard already being probed for fraud and market
manipulation
    * Investigation widens to money laundering
    * 

 (Adds detail, background)
    By Jörn Poltz
    MUNICH, July 9 (Reuters) - German state prosecutors are
investigating Wirecard  WDIG.DE  for suspected money laundering,
a spokeswoman for the Munich prosecutor's office said on
Thursday.
    "We are investigating suspected money laundering," the
spokeswoman told Reuters, saying the inquiry was directed at
individuals from Wirecard. She said it followed a number of
criminal complaints this year and last.
    Wirecard declined to comment.
    The implosion of what was seen as a German success story
once worth $28 billion has caused major embarrassment with
experts and politicians criticising what they see as a hands-off
approach on the part of the authorities.
    Wirecard filed for insolvency last month owing creditors
almost $4 billion after disclosing a 1.9 billion euro ($2.1
billion) hole in its accounts that its auditor EY said was the
result of a sophisticated global fraud. 
    Wirecard started out handling payments for gambling and
adult websites and now processes payments for companies
including Visa  V.N  and Mastercard  MA.N . 
    Some of the world's biggest investors held its shares before
a whistleblower said it owed its success to a web of sham
transactions.

 (Reporting by Joern Poltz; additional reporting and writing by
John O'Donnell; editing by Edward Taylor)
 ((MichelleHannah.Martin@thomsonreuters.com; +49 30 2888 5223;
Reuters Messaging:
MichelleHannah.Martin.thomsonreuters.com@reuters.net))