Oliver Bellenhaus, the former executive of Cardsystems Middle East FZ-LLC, Wirecard’s Dubai based subsidiary, was arrested this Monday on suspicion of fraud.
Reports claim that, upon his arrival from Dubai, the former head of Cardsystems turned himself in after an issuance of a warrant for his arrest. He will join in confinement the CEO of Wirecard as well as three other managers. The group will remain under active investigation connected to a nation wide accounting scandal centring on a missing $2.1 billion sum that was allegedly kept in Asian trust accounts.
Reports reveal that Cardsystems was essentially a one-man operation, based in a Burj Khalifa apartment. What’s interesting is the following fact that 1/4 of Wirecard’s revenue is due to CarsSystems’ operations, which earned €69 million in 2017, or 40% of Wirecard’s’ total profit.
The scandal has reached Jan Marsalek, a day-to-day manager of operations, who was in charge of doing business with third party companies. Marsalek was also the former manager of finance in south-east Asia. Furthermore, the head of Wirecard’s Middle East operations was also arrested for attempting fraud on multiple counts.
The chief executive of Wirecard was released from custody on bail, after covering his arrest with a €5 million deposit. His main accusation is inflating the company’s balance sheet, making it seem more appealing to investors.
Wirecard has been under the radar for a while now, following the shocking revelation when it admitted to a €1.9 billion missing amount from its Asian banks accounts. Following this, the company has filed for bankruptcy, and is most likely to collapse. Previously, Wisecard was valued at €24 billion, before descending into scandal.