Wirecard boss's lawyer calls allegations 'absurd' in fraud trial

Wirecard AG

12/12/2022 10:34

By Jörn Poltz
       MUNICH, Dec 12 (Reuters) - The former Wirecard CEO
Markus Braun began his defence in Germany's biggest post-war
fraud trial on Monday, as his lawyer dismissed allegations of
wrongdoing at the defunct payments company as "absurd" and
prejudiced.  
    Braun, 53, and two other managers are on trial on charges
including market manipulation and fraud and could be sentenced
for up to 15 years in prison if convicted. 
    Braun has always denied wrongdoing.
    Wirecard's collapse two years ago sent shockwaves through
the German political establishment and tarnished the country's
business reputation.    
    At the start of the trial last week, prosecutors accused
Braun and others of being part of a gang that invented vast sums
of phantom revenue through bogus transactions with partner
companies to mislead creditors and investors.
    They said the deception allowed Wirecard's managers to
siphon money out of the company for years. 
    Braun's lawyer Alfred Dierlamm's defence sought to puncture
those claims in court on Monday. He told the court that Braun
had never sold his Wirecard shares and had actually taken the
initiative to call in outside auditors from KPMG to investigate
Wirecard's finances.
    "It's an absolutely absurd and erroneous notion that a gang
leader would act like this," Dierlamm told the court. 
    He said Braun's case had been prejudiced since Wirecard's
collapse and his client's arrest in 2020, alleging that the
prosecutors were biased and under pressure to find a culprit
after another of Wirecard's managers, Jan Marsalek, fled abroad.
    Braun's lawyer told the court that the prosecution's key
witness was the main perpetrator. 
    Dierlamm asked for the trial to be suspended to give the
defence more time review documents, given the volume of "files
that were dumped on our table". 
    Founded in 1999 and based in the Munich suburb of Aschheim,
Wirecard's spectacular rise transformed it from a payment
processor for pornography and online gambling to a showpiece for
a new type of German tech company that could compete with the
established titans of Europe's largest economy.
    Its demise shook the German establishment, putting under
scrutiny politicians who backed the company and regulators who
took years to investigate it.
    After batting away suspicions of wrongdoing from investors
and journalists and successfully lobbying the German authorities
to investigate those who were scrutinising its finances,
Wirecard was forced to admit in June 2020 that 1.9 billion euros
($2 billion) were missing from its balance sheet.
    Wirecard became the first-ever member of Germany's DAX blue
chip stock index to file for insolvency, owing nearly $4
billion.
    In court, Dierlamm questioned the credibility of statements
by Braun's co-defendant Oliver Bellenhaus, the former head of
Wirecard's subsidiary in Dubai, who became a witness after
turning himself in to German authorities in 2020. 
    Bellenhaus's lawyer last week asked for a reduced sentence
for his client in recognition of his co-operation.
    "Bellenhaus is not a key witness," said Dierlamm.
"Bellenhaus is the main perpetrator of a gang" whose sole aim
was to divert and embezzle funds from the company.
    Another former executive, Stephan von Erffa, is also on
trial. He has publicly expressed regret about the events at
Wirecard but denied orchestrating them. His lawyer has said von
Erffa did not want to comment on the charges.
    Marsalek, Wirecard's former chief operating officer, is an
international fugitive on Europe's most wanted list whose
whereabouts are unknown. 
    A verdict is not expected before 2024 at the earliest. 
    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Wirecard bosses' fraud trial begins after scandal that rocked
Germany     urn:newsml:reuters.com:*:nL1N32Y0I4
TIMELINE-The rise and fall of Wirecard     urn:newsml:reuters.com:*:nL8N32V2I0
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Writing by Matthias Williams. Editing by Jane Merriman)
 ((matthias.williams@thomsonreuters.com;))