Wirecard was a fraud that was publicly known, thus raising so many questions about their business practices. Regulators and important financial players treated the company as a rock star, fabricating customers, inventing earnings, and lying about the whereabouts of €1.9 billion in cash.
In a business setup, high integrity must be maintained for a business to be recognized and acknowledged in the market setting. Contrary to the market act of being true to any business carried out, Wirecard was never the same, thus being bullied back due to fraud. In the meantime, journalists and short-sellers who expressed concerns about the corporation were accused of conspiring and subjected to an investigation.
Concerning Wirecard, through its management, even though the business was ordinary and to help other entities to grow, their focus was different. Reasonably, their emphasis was to fabricate customers, invent good profits, and expropriate investors’ capital.
Equally, manufacturing the customers meant that the management could only gain through the sweat of the customers who have sacrificed a lot only for the Wirecard management to gain. Similarly, in the end, by devising the customers, the clients will never achieve anything, and this has happened for so long. Therefore, the outcome is that the administration of the Wirecard Company could only take from investors’ money.
In reviewing why the market was so bullish about Wirecard, many instances caused the Wirecard to be tormented. The extent of the Fraud at Wirecard was vast, according to a report by KPMG, which was called in as a second set of eyes to evaluate charges about the company.
The counterparties in these transactions were not actual businesses; therefore, around half of the sales and practically all of Wirecard’s earnings were made up. Surprisingly, this kind of fraud by the Wirecard company must continually raise the question of why all these happened under the editor’s watch, who could otherwise pick up the menace early and solve it.
It is now known that about the €1.9 billion that was allegedly said to exist was all along with fake. Reasonably, it must always raise the question of why Wirecard company, through its management, was lying about €1.9 billion. In addition, in early 2020, it was believed that this money was held in some bank accounts based in the Philippines under the trustee accounts, but it was still fake.
Equally, this raises a red flag to the auditor general, and the auditor general had not even verified the money that was purported to be in the trustee accounts. Generally, faking money by business entities helps these corporate entities gain more market and defraud people’s money. Thus, Wirecard was a fraud company, which was why the market was so bullish about it.