German Prosecutors Charge Two More Former Wirecard Executives in Expanding Scandal

German prosecutors have charged two additional former Wirecard WDIG.H executives, expanding the investigation into one of Germany’s largest corporate scandals. The Munich prosecutor's office announced the charges on Tuesday, targeting Alexander von Knoop, the former finance chief of the now-defunct online payments company, and Susanne Steidl, who served as the board member for product development.

Wirecard collapsed in June 2020 after revealing a 1.9 billion euro ($2.1 billion) shortfall in its balance sheet. This collapse rocked Germany’s business world and drew scrutiny towards politicians who supported the firm and regulators who delayed investigating the allegations against it.

Von Knoop and Steidl are charged with multiple counts of embezzlement, according to the state prosecutor’s office. Additionally, von Knoop faces charges of aiding and abetting embezzlement. The former executives allegedly approved loans and other payments despite some being in arrears on interest and having questionable repayment prospects, leading to substantial losses for Wirecard.

“Wirecard AG suffered losses of several hundred million euros as a result of all these breaches of trust,” stated the prosecutor’s office.

Steidl's legal representation declined to comment on the charges. Attempts to reach von Knoop by telephone were unsuccessful, but he had previously testified before a parliamentary inquiry that he was unaware of any criminal activities.

Von Knoop and Steidl join a growing list of Wirecard managers facing legal action. 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.

The decision on whether von Knoop and Steidl will face trial is still pending.

By fLEXI tEAM