Wirecard scandal: Ex-manager charged with hundreds of millions of euros for infidelity

Wirecard scandal: Ex-manager charged with hundreds of millions of euros for infidelity

The Wirecard debacle has sustainably shaken the German financial sector. This new chapter of the investigation shows that the consequences of the scandal continue to make large waves. The Munich public prosecutor recently charged two former board members of the failed DAX group: the former CFO Alexander von Knoop and the former product development director Susanne Steidl.

unfaithfulness allegations and damage amounts

The two are accused of being involved in several cases of infidelity, which resulted in damage in the high three-digit million range for Wirecard. In particular, it should have been the unsecured award of company funds to business partners. An exemplary loan of 100 million euros to the Singapore company OCAP is considered particularly problematic by the public prosecutor. This showed that monetary assets may have been awarded without adequate security precautions.

Role of Knoop and Steidl in the scandal

Although Knoop and Steidl are not allowed to be involved in the alleged fraud, they are still critical of public perception. The public prosecutor's investigation relates to a period since it started to enter the board in January 2018 when the first fraudulent activities have already taken place. According to their defense, they were never informed about misconduct and would never have had the intention to harm Wirecard AG or their shareholders.

Development of the procedure

The district court in Munich I is now facing the challenge of deciding on the indictment. The complexity of the case, which has already caused a sensation in public, represents a challenge for the judiciary. The main focus is on the question of whether Knoop and Steidl have violated the duties that are responsible for a board.

Social effects of the Wirecard scandal

The Wirecard case not only shaken confidence in the group and its managers, but also far-reaching consequences for the German financial supervision and the regulation of companies. Since then, banks and investors have started to rethink their risk reviews, which could lead to strict requirements and a stronger supervision.

Outlook for the future

The coming months will be crucial to clarify which teachings the economy can pull out of this scandal. A fundamental rethink in corporate management could possibly be promoted by stricter guidelines for liability and responsibility. The discussion about responsibility in companies will continue to gain intensity with the approval of the indictment and the subsequent processes.