Wirecard Paid Out $180M Fraud Loans During Investigation

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Wirecard (Courtesy: Shuttershock)
Wirecard (Courtesy: Shuttershock)

Wirecard, the abandoned payment company, paid out at least $180 million fraudulent unsecured loans in the first three months of 2020. This could mean the destruction of the company, but the were hardly bothered.

The Financial Times provided on how the company worked as the global accounting firm KPMG had been investigating Wirecard since October of 2019.

The investigation found out whether the company was defrauding company investors willfully for a substantial setback for digital asset businesses intending to work with Wirecard to provide Visa-like crypto debit card products.

The investigation was carried out by the Financial Times started in 2015 while the internal investigation begun in March 2018.

Documents received by the Financial Times indicate that loans in early 2020 included more than $115 million paid to Ocap, a mysterious Singapore-based shell company that had already failed to repay previous Wirecard loans by the end of 2019.

Ocap was previously run by a former Wirecard executive, whose wife served in a senior position at the company when the 2020 loans were extended.

The Financial Times found that Wirecard also made loans worth more than $45 million to a second Singapore-based company, Ruprecht Services.

Loans were allegedly made as pre-payments to card payment processing partners to whom Wirecard outsourced work outside their financial jurisdiction.

By March 2020, more than $1 billion had been loaned to Asia-based partners found to be highly suspicious or outright fraudulent companies.