tv The Wirecard Case Deutsche Welle April 27, 2021 11:15am-12:01pm CEST
taking leipzig all the way to the champions league semifinals. and you watching the news has your mind off our top story emergency medical supplies have begun arriving in india as it faces a devastating search off coronavirus cases in the u.s. are among members of the international community sending supplies as hospitals inundated with critically ill patients. and you have to take i think as a documentary the quiet odd case the fixed as and the trick to see it extract the banks. lend up lol and they. would people have to say matters to us. that's why you listen to their stories. reporter every weekend on d
w. c i gather the ladies and gentleman i would like to assure them of all owing statements on behalf of the board of wire card. i think i watched the video i think i've washed the $120.00 times it's come to the east coast cannot be ruled out that the wire card may have been the victim of fraud on a grand scale. goldman sachs you knew these guys were were done. thank you. i just laughed i was happy. why are current shares are crashing listed as why are sinking in a target here is what i meant services provider liar cards homeowners it's a mixture of crime drama and action for us in this new. the
spog it was like being punched in the stomach. it was like finding out after 30 years of marriage that you've been cheated on for 20 months its currency shonda told. by garage are making more money and boy than i could ever imagine. well i felt on top of the world i've never been so happy. when we both already hit me i had to fill myself up with a beer so i could sleep it's a disaster. that's fine if this was terrible news for germany's financial sector and for the investors to go buy a car why are card is my roof that nothing in life is impossible the unthinkable can happen.
man oh man i must pay to have a role that i may actually inventor and founder of whack out owns it's basically my brainchild if. it's only to move seemingly it came to me 997 as i was sitting on my couch with a glass of wine weevils and asking myself was quotes the next big thing. and then i started thinking in payment transactions there is always a customer an event that if a little know what trusty java vault almost if and my dear of the time was to create a trusted mediator states to ensure that the payment is processed and also the product is delivered to give it. up on that was the identify what caused. it. or was yours
may be seen but i soon realised that if i wanted it's a good thing i definitely needed external investment of his. so i started looking for some. 2000 i in 2001 there were 60 employees at y. a cot and office had to films with a certain pride like watching a child. going. so many modern takes a company was looking for a technical director it was back then a certain mr marshall lek applied and then the interview he made an open sophisticated impression typical viennese humanism. extreme he was extremely friendly with a great presence was he had always been the source i kind of wondered at the times in seeing this 19 year old with no high school diploma was his all this stuff he saying really credible state of else. i missed
a few key thing here has disappeared in the multi $1000000000.00 wire card accounting scandal you did have wire cardboard member yawn marshall like maybe an bellows roots according to media reports of 40 in the philippines corrupt officials helped cover up for mccourt member mattia next track. my name is mark i hold us some people would sound retired but i'm a restless soul so i do a number of things one is i raise chickens i also grow fruit. but most people know me for shorting stocks. finding and rooting out corporate fraud and exposing rascals in the marketplace both in the united states and abroad.
well people don't. it's not just a german thing i myself am hated in canada i was hated and brussels not. short selling is a part of the financial markets. and we have the possibility to restrict it at times when that makes sense of it often involves very profit oriented speculation. but that doesn't make it completely unreasonable. in xinhua i have 5000 that i and i started working at wild card in 2003 there was a relatively small number of employees sascha a company's core business was payment processing like today. i squashed this concept online payment and once online payments got started of course the areas of pornography and online gaming really took off gaming hogger at
least as far off and wild cards main business was in those areas caught bogen are orphans and by safin soto's until i had this as tight as forced and in 2003 i had a 2nd job interview with marcus brown on id mill and on and on all the foggiest in which i was asked whether i would have problems dealing with adult entertainment content and that i deserve action entertainment's a short introduction to myself i'm the c.e.o. of wild card since 10 years why a card just the way they are my paper processing company talked about how to grown came from a renowned management consultancy accordingly he was quite standoffish the uneven off the walkout was told me he switched to the board of directors holds and continue running the new wild card. the i'm just an army doctor marc was last night we arrested dr marcus brown and we
are now investigating suspicions of false statements and market manipulation if that's a must that you must lie and this and i can talk it always seemed like it was 2 films above everyone else i am myself only on 2 weeks and had all these big visions and ideas that tended to surpass every time nancy c. of i'd make fun down on my lead teeth i really figured that one of our most beautiful our minds. mind mankind is that we tend to think abstract and that we can think about the better way to do things. and to meet me personally why a conscious like a 2nd family i find it's fine to me there. is hope for that to come from the start it felt a bit megalomaniac the need for us and he wanted to take this company on to the tax
mission. so if you start your base business doing payment processing for porn and or gambling it shows the world that you have no boundaries of doing things and as you grow you get a stock price then you can wrap a label around it like fantastic i could have a white horse and paint black stripes on the horse that's just a white horse with black stripes it's not a zebra. right and i could go and sell the horse is a zebra and i can say this is a zebra hey all this is is a white horse with black stripes. young much alick on marcus hong vonn and mashallah can mock brown how to teach
a people kind of relationship right from the beginning she. must helicopter i'm just a machine like had a lot of technical savvy and knew what was going on in. the stinker scene harmes if i had a cynic might think they complement each other very well on the path the company took film all good norman hot. marcela qualifies and c.m. mr musharraf was a very friendly approachable person one. who hosts 19 i know don who was often happy to chat with the employees. in mid to high time on tuesday as di i knew he was there and that he was responsible for the asia business but that was so and this.
young mas of a couple probably led at least 3 lives at once if you get out he was on the wire cardboard and had to make a serious impression or 2 and he was responsible for the asia business where he was probably the driving force behind the accounting manipulation he tied the car and then there was the 3rd marshal that he boasted about being a secret agent but it was probably more than just bragging rights. running straight as a pregnant i'm a short seller. expose companies that have
irregular accounts i'm now an issue. and where they don't disclose all the problems all the elements of the business to investors or the public. we basically bet on the share price going down if we're wrong it costs us a lot of money a lot you know you're young betting 2 pounds or why a card going down your back to millions. i haven't heard of why a card until. july or august a company break sadly 2050 and then someone said. then there are a should not precious are expanding and we don't know why i think it curious that. way why we spent thousands of hours researching it.
so we published a damning exposé a 100 pages we called it is a tower of research and investigation. oh it was a complete fraud paul people said that we used the word fraud to much higher so i think we didn't use the word criminals enough and it was back on. our target price for the stock was a completed not a 0 you can't go lower it was a complete does not a 0 it was worthless. like with india. so a company has been for sale for 2 years retail for 2 years so g.r.
burrito day travel tourism and the commerce the prices come down from 70000000 to 50000000 to 4xw3xw it was for sale and need to me jury of why a card board that they sold it to why a card and why i can't go along and pay 340000000 there was just no way in the world i could get my head why you would even buy the business. via copy from long invent looks like wire card had long not been profitable in its core business in europe that had been losing money. and that they covered it up through manipulated accounting money pulitzer one. the assumption is that it began with acquisitions in asia ozzie. for instance a payment service provider in india with not much behind it. to look you can see.
340000000 for a company that badly why did daryn. they presented these investments as a very valuable idea when they cooked their books through acquisitions of asian companies nobody had ever heard of here in the kind of content it was the biggest indicator that if you can add up 340000000 houses really that. does most of the even obvious pattern of acquisitions continued through the entire story there was then a big a take over where they voice and package of companies from india and singapore the payment floats were funding orishas and it is unclear to this day who was behind it interesting. to talk to the traditional arts so there's reason to suspect that money might have been misappropriated by people with connections who. called.
i thought there was a matter of bullshit. that would actually pick the reporter up and go through their credits it's very dramatic if you want to call it that forget the drama or sit down and i'm going to testify. to the tone of the report was perhaps sometimes a bit shrill or not every bit of information was 100 percent soundly researched but the core of the story was correct english. well after. suffering oh no they persecuted me market manipulation were what was manipulating the market. the criticism was why did you to anonymously hello we don't want to die all
that subset what sort of company would follow its employ of follow critics break it into the 3 and a half years later i've got 5 codes from jessica hardly spoke phrases. you were followed for weeks you simply have to oh shit they hope like that they took pictures of me in the afternoon when they've been following me for weeks at a run by the former intelligence officer over libya. we were getting sagrera to act. for through the show cellar door spotlight. the room. so much that i'm stepping on mr leno and i work in radio calabria as a deputy prosecutor.
sort of took over the gambling operation was a very complex i think about a 1000 raids were carried out into gambling halls and betting offices all across italy you see today down in. the 19 i just thought oh man the investigation revealed that the s k s 365 betting oughtness anybody had collaborated with organized crime and various regions my duty to going before them they worked with the mafia and sicily you. when you look then drunk and calabria that on the bank. and off. he stammered years ago by the system of s.k. yes it was money laundering basically. it was about injecting profits from criminal businesses the into the normal economy. i did it was.
quite good but not a live wire card was one of the banks used by criminal organizations to deposit the profits that they had made through their illegal business. that was that the. it did not surprise me at all when reporting came out of wire cards usefulness to the mafia. my need his family could hear and i'm a hedge fund manager here in new york i run soccer capital management which is a short only hedge fund. in our firm is named after the ancient egyptian goddess soft cat soft cat was the goddess of knowledge
mathematics accounting wisdom which all seemed very perfect. i love short selling and that's how i want to make money. back in 2017 we were preparing to launch in january and we wanted to have a good pipeline a healthy pipeline of various short positions where we have conviction the price will go down. our belief and every piece of evidence that we were able to collect over the last almost 3 years pointed towards wire cards being a massive. digital laundromat. then on to neiman b. while companies like wire card are at the forefront of digital business traditional banks are lagging behind with the commands bank now fears losing its got on the dax due to its low stock value and why are card might take its place let me say of
course for projects differently to my storm to become part of the. box or do. i cut my account it's funny you just have a 20000000000 your a little less than 5000 employees the company has achieved a gigantic stock market 5 years off and. one vision is now to become the biggest x. company. in there not a chimp i'm vanity options and i bought 520 chefs equivalent to 70000 euros. in it i'm 67 years old and i've come to see for 38 years.
and i've spent most of my life basically it seems like you should also if. i had saved up some money during that time and i didn't want to simply leave it in the back so i invested it in markov's than him but it worked out in the city of. telling us the fruit i felt the with those $70000.00 euros i really had something else this is it was security on a come on the mother that i wouldn't have to watch every year on hold of an old it was a great feeling to washington just different. when you have such a sensitive story and we wanted to get it right we waited more than 3 months before we finally pulled the trigger. my name is lionel baba i was the chef of
a of the financial times between 20052020. we got a tip that in singapore there was an investigation internally into whether why it caught people in wa cod were inflating the numbers so we went to singapore we talked to whistle blows who gave us documents old that was in january february 2019. wa cod was the biggest story that i've ever done. to hide but according to a report by british newspaper financial times the shares recently had quite some turbulence germany's financial services regulator bof a has been conducting routine investigations due to the enormous fluctuations in bof a never asked to talk to the reporters they never asked to see any of our material
nothing then we read in the newspapers that puffin had opened a criminal complaint against 2 of our reporters for doing their job. and. now it is true that some short sellers bet against the stock but that is not illegal what i don't understand is how baffin thought that we were conspiring with these people. i have literally no idea. what baffin thought they were doing there was also an unprecedented ban on short selling. the films of since the financial regulator is investigating whether speculators who make money $3.00 for one prices are. often has now fund short selling
why a conscious yes my footboard did react to india bought for half an interaction really saw his confirmation in the employees that all these rumors must be unfounded storms i come to you buff and often reinforced my belief that everything was just fine. i was driving back from santa barbara with my wife when it happened and i i actually couldn't believe something like that would happen i've been doing this for 5 decades and get all my years i've never seen a single stock short sell ban imposed by a regulator. i thought it was beyond strange and a sign that things were terribly wrong. we needed to defend ourselves and potentially convince boston to remove the ban and then the
other issue was part of why or card success was it painted hedge fund managers and short sellers as we were the criminals and we were just these these anonymous unknown figures with moving lots of money i thought that because of that it made sense for us to put a face to the short sellers and to say we believe that this is potentially a money laundering scheme. first interaction was of course on the public letter we had published on to boston regarding the short selling. interestingly just a few weeks after i had submitted that letter to boston i was going to be in germany and i offered to meet with often in a confidential setting to share the information and to be
a resource to them and they of course refused the meeting. you home by yahoo for years we only have heard that buffett was acting against journalists and short selling us and yet the hum of a new host at least until june 2021 we never heard that buffett was also looking into other matters for instance a potential market manipulation by wire cuts and signs why i caught. this just the order was in fact given to also examine why i caught a count in light of this press coverage which was to stop the full to name. of me cut up a public didn't hear about this because they probably wanted to prevent any details from escaping that would harm the company's reputation and names escape and they can survive for shift t.v.
there is a whole range of rules that were strictly public reporting in order to protect market confidence and as for tom schultz is. the boston hot involved often actually misled the market through its behavior allowing wire cart to keep acquiring money as this meant across stores had one more year to loot the sinking ship they raked up another 1000000000 on that has now ended up somewhere it's one of the. we were terribly concerned that while a card was trying to infiltrate us. down the crime put in particular who was the lead reporter was sure that his email had been kept. he also thought that he was under surveillance. we discovered an individual hiding under the bridge with a hi lisa fish. stick
a did sound equipment camera focused on my office. so we took extraordinary careful measures to insulate dan mccrum to keep our information secret documents and very very watertight so the next piece in the puzzle was to investigate who these 3rd parties that walk odd was dealing with. we knew from our information that a lot of the revenues and profits was derived from. and some funny names. pay a lot longer and things like that wire caught wire cards and we need these companies for instance because we lack the license to make certain payments in those particular countries and that's why we're buying them because they have
a license and they're anchored in the local market foreign coach dean and says i'm going to get there with them why are card obviously managed to simply fake revenues . is a piece of hardware companies played along in the manipulated accounting money so on deadlines and one of the places we went to was the philippines. we actually went to the place where this company was supposedly registered and we found an old seaman he didn't know anything about lockhart. we went to another address and it was a bus company. and we knew this has capital markets speculation just like previous articles the 1st because we feel we can leave the whole issue behind us now and focus on a very strong 2919.
is used just these are from 2 and spines of the really surprising things is that this mode of operation involving on going to niles kept working and a lot of people never thought to say let's take a close look at the. 0. and some younger arms than young was why are cards official auditor at the time account . they should have noticed. we wrote a letter to their auditors e n y highlighting a lot of stuff that the financial times came up with and some basic accounting things why this thing should be looked at that the numbers make no sense that the cash isn't the cash wire card never really gave a good explanation of why they needed us cookouts and for. that to have
billions over a $1000000000.00 in an escrow account is very very suspicious you want to. buy our copies and toys and hope that's what did wire card claim it needed this trust account for. because it was supposed to hold money that belonged to wire card and wire card needed it as a safeguard for business partners in asia with which wire card was allegedly processing payments. so it was up to ernst and young to check whether the money wire card claimed to have been in escrow account in singapore a really existed knock the end he really belong to wire cartridge why are caught on to just give me a columnist me give them and i basically feel like any other citizen of this country i really can't understand how that went on saying in the audit that was performed regularly and normally by the orders in company for individual who has
a shift i'm trying to do what i said we're going to write the biggest. just tough a story where they will half to admit that they're lying and that their stories a fake and their revenues a fake. we publish this article and they could not get out of it we also published very unusual internal huge documents to show that documents were not fake and as a result of that the ice is finally melted. the condom on encounter often isn't there you could read how wire cards cooked the books and it was quite sophisticated and difficult to grasp. and so unfortunately it was an intelligent model for cheating which is unfortunately why it worked for so long that said i'd also not if we were convinced that eventually would collapse what was extraordinary is it took so long because the company fort like a rat in
a corner. under much pressure from from shareholders of water card why are card hired k.p.n. . a big 4 accounting firm to investigate all of the allegations that the financial times had raised. their copy in the british stand off talking. to him i personally if you take a p. and g. report they commissioned as a way of my god science i caught them i going to prove once and for all these insinuations a completely isis and i'm from least on the phone. so think a pansy report that elevated all of you pinions that critics of wire card journalists all had and that was that it's impossible to solve frauds always look for an end game what's the end game here what's how do we how does marcus braun go
to be a captain of industry and get out of this i just want to say i'm also. how to logic optimists you have to sell the company or merged the fraud into something so big and so robust. i mean how up until the end they were talking about merging or buying out or doing something with deutsche bank. a slush funds it sounded very concrete because deutsche bank was struggling and had problem anymore no one had to dish and of course why are cards idea was to prop up this theater of illusion to toil when perhaps also fulfill the politicians dreams of a major german financial player did a much bigger con if they would have acquired deutsche bank or doing bank acquire
them or they merge they would have accomplished the ultimate and that is become something legit and then they would have written everything off and gone off into the sunset as part of deutsche bank. something the forgotten how true fairly good has been cases in the past when fast growing companies with high stock market values have taken over well performing traditional companies the. good for the in the 22 little dilema below. sometimes it went well and sometimes it didn't in this case i'm very glad the speculation didn't actually come to her wish and before it just. went k p n g did their investigation they flags the issue of escrow escrow accounts and at that time wired quite provided no documentation.
on the transfer of the alleged escrow accounts from singapore to mr tolentino in the philippines it happened at a time when k p m g was already conducting a special audit intended to investigate precisely this asia business and the escrow accounts that are. helpful and geno's and mr tolentino was a lawyer who had mainly dealt with divorce and custody disputes the whole so there was no apparent reason to entrust 1900000000 euros to a single lawyer like him as a trustee on my i think they switched trustees out of panic because they knew they were really cornered now the point had been discovered where there really was manipulation going on the money put in is. to be legally compliant why are card had to submit an annual financial statement for 2019 approved by their auditor by the end of june 2020. the month
of june it became clear that either they'd get the signature now or arnstein young would get serious and say we're not signing for $29.00 chain and for a publicly traded company that's basically a death sentence i don't. want biased when you see what yanmar sialic said and did it all seems incredibly not. if aunt and i don't buy up all the way out is humorous i think he wrote those emails to buy time signed exit to prepare his exit plan and disappearance orange and to pretend that everything was still fine. on the skin or over because there were people at his throat saying we need documents now your poll has to log but
according to. the momentum for now i'm really bureaus of accounted for all that are said to be in or scroll i found it was in the attic so i just put audited had doubts back documents regarding a 1900000000 euros in escrow account they mind after the management board admitted that the 1900000000 euros missing from the books probably never existed the shed has been in freefall high 5. inches on does indeed you title with there are charges of organized fraud embezzlement incorrect statements and market manipulation in numerous cases and fein. is a vinicius and i do think. when i think of marcus brown and yachtmaster lake which
i feel very tone in said speakers 5 if i had the chance i would definitely ask. why . should it and i just want to know the truth i don't know if. i deserve to. after all this time and dedication are devoted to why account. should if i had cut. i was sitting out there in the garden and i thought it's all over us and. this is like having the rug pulled out from underneath you fall into a deep hole or mentally you don't even know when it will end what just keep you
forward you don't know how you'll manage to get out again. and comedy are new and then i have the lucky idea of asking the shipping company to get a new the boss of the company i said heiko i'm sorry but i have a real problem i'm broke and i need a job can you get me wrong from a fellow my face with while i'm lost 70000 euros and i have nothing left of his looks now. like a compass and finance come to why a card is a financial scandal that must be investigated i deem but appropriate action also needs to be taken as a canal. if nothing changes he would just have been a bad scandals and the real scandal will be al failure to grasp this opportunity to implement the necessary reforms the new form often used to bring why are hard is not the 1st german financial scandal i don't have much faith in all laugh and i
don't have much faith perhaps in the politicians who are now suddenly up in arms about why or card i hope that the public forces these politicians to take necessary actions and further to to hold them all accountable. if they hadn't missed a let's see. i'm about to turn 68 and i have to keep going to seem to compensate for this loss of compensation come. to use them to cause far as i can see the politicians of for. i felt completely. willing. to lose leila. illinois. nothing.
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