Two Additional Wirecard Executives Charged in Accounting Scandal, Reports Reuters

MUNICH (Reuters) – German prosecutors have charged two additional former executives of Wirecard, as stated by their Munich office on Tuesday, indicating an expansion of investigations into one of Germany’s largest corporate scandals.

Wirecard’s collapse in June 2020 was triggered by a €1.9 billion ($2.1 billion) gap in its finances, which not only rocked Germany’s business landscape but also drew attention to the politicians who supported the firm, along with regulators who took years to address serious allegations against the company.

Alexander von Knoop, the company’s former finance chief, and Susanne Steidl, a board member responsible for product development, have both been charged with multiple counts of embezzlement, according to the state prosecutor’s office. Von Knoop faces additional charges for aiding and abetting embezzlement.

The prosecutors allege that the two former executives approved loans and other transactions even when some were overdue on interest and repayment appeared dubious.

“Wirecard AG suffered losses of several hundred million euros due to these breaches of trust,” the prosecutor’s office said.

Von Knoop’s legal representation stated that he was unaware of any wrongdoing that harmed Wirecard or its shareholders by others within the company. They emphasized that he never intended to cause harm to the company and had actively cooperated with investigators throughout the proceedings.

Steidl’s legal team declined to comment on the charges.

Both von Knoop and Steidl are among several managers facing legal repercussions stemming from the scandal. Current and former executives, including CEO Markus Braun, deputy finance chief Stephan von Erffa, and Wirecard’s Asia representative Oliver Bellenhaus, are currently on trial in Munich for alleged fraud and falsification of financial statements.

A decision is still pending regarding whether von Knoop and Steidl will proceed to trial.