German prosecutors have charged two more former Wirecard executives, expanding their investigation into one of Germany’s largest corporate scandals. The charges were announced by the Munich office on Tuesday. Wirecard collapsed in June 2020 over a 1.9 billion euro ($2.1 billion) hole in its balance sheet.
Alexander von Knoop, Wirecard’s former finance chief, and Susanne Steidl, a former board member for product development, face charges on multiple counts of embezzlement. Von Knoop is also charged with aiding and abetting embezzlement. The charges allege that the executives approved loans and payments despite significant arrears and questionable repayment, according to a statement released by the prosecutors.
“Wirecard AG suffered losses of several hundred million euros as a result of all these breaches of trust,” the prosecutor’s office said.
Von Knoop’s legal team has stated that he was unaware of any wrongdoing and had no intention of harming the company or its shareholders. They also emphasised that he fully cooperated with the investigation. The law firm representing Steidl had no comment on the charges.
Von Knoop and Steidl are among several former managers facing legal action in connection with the scandal. 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. It remains to be decided whether von Knoop and Steidl will also stand trial.
Founded in 1999 and headquartered in Aschheim, near Munich, Wirecard experienced a meteoric rise, becoming a leading German tech company and rivaling established giants in Europe’s largest economy. Initially processing payments for adult content and online gambling, Wirecard’s value soared to $28 billion, and it replaced Commerzbank in Germany’s DAX index.
Despite facing doubts from investors and journalists, Wirecard managed to deflect scrutiny and persuade German authorities to target its critics. However, in June 2020, Wirecard admitted that €1.9 billion was missing from its balance sheet. It became the first DAX member to declare insolvency, with nearly $4 billion owed to creditors.