en.wikipedia.org/wiki/Wirecard_scandal
4 corrections found
Also in 2007, Wirecard expanded into banking by purchasing XCOM Bank AG
The XCOM Bank acquisition took effect in 2006, not 2007. Contemporary company records and later timelines both place Wirecard’s move into banking in 2006.
Full reasoning
Wirecard’s own historical filings place the XCOM Bank acquisition in 2006, not 2007.
- In the 2005 annual report of MWB Wertpapierhandelshaus AG (the seller’s parent), the company states: “XCOM AG sold XCOM Bank to Wirecard AG with effect from January 1, 2006.”
- The Financial Times’ Wirecard timeline likewise says: “2006 Wirecard moves into banking with the purchase of XCOM.”
So the article’s date is off by a year: Wirecard’s expansion into banking via XCOM happened in 2006.
2 sources
- Annual Report 2005
XCOM AG sold XCOM Bank to Wirecard AG with effect from January 1, 2006.
- Inside Wirecard / Wirecard: the timeline
2006 Wirecard moves into banking with the purchase of XCOM.
A clean audit from EY in 2007 allayed investors concerns.
EY did not audit Wirecard’s 2007 accounts. Wirecard’s 2007 annual report shows the auditor was RP Richter, while EY was only brought in for a special audit in 2008.
Full reasoning
This sentence misidentifies both the auditor and the timing.
Wirecard’s 2007 annual report says the 2007 annual and consolidated financial statements were audited by RP Richter GmbH Wirtschaftsprüfungsgesellschaft, which issued the unqualified opinion. It does not say EY audited 2007.
A separate Financial Times timeline states that in 2008 EY was appointed to conduct a special audit, and only the following year replaced the prior group auditor. The same FT timeline also places the notable clean audit from EY in 2017, not 2007.
So the article’s statement is incorrect: EY was not the firm that issued Wirecard’s clean 2007 audit.
2 sources
- Wirecard Annual Report 2007
The auditing firm RP Richter GmbH Wirtschaftsprüfungsgesellschaft ... audited the individual annual financial statements of Wirecard AG as at Dec. 31, 2007 ... issuing an unqualified audit certificate in each case.
- Inside Wirecard / Wirecard: the timeline
2008 ... EY is appointed to conduct a special audit, and the following year replaces the small Munich firm that had previously acted as group auditor. ... 2017 A clean audit from EY ... prompt renewed investor enthusiasm.
In July 2021, Wirecard hired corporate investigations firm Alix Partners to perform a forensic investigation of the accounting practices that led to its insolvency.
The AlixPartners engagement was reported in July 2020, not July 2021. Reuters and other contemporaneous reports dated it to July 21, 2020, shortly after Wirecard filed for insolvency on June 25, 2020.
Full reasoning
Contemporaneous reporting shows this happened in July 2020, not July 2021.
- A Reuters report republished by MarketScreener is dated July 21, 2020 and says: “German payments company Wirecard has hired Alix Partners for a forensic investigation of the accounting scandal that led to its collapse.”
- PYMNTS, citing Reuters on the same date, likewise reported on July 21, 2020 that Wirecard had hired a forensic team and contracted with Alix Partners.
Because Wirecard filed for insolvency on June 25, 2020, the article’s statement placing this in July 2021 is a one-year error.
2 sources
- Wirecard hires Alix Partners for forensic investigation: sources | MarketScreener
Published on 07/21/2020 ... German payments company Wirecard has hired Alix Partners for a forensic investigation of the accounting scandal that led to its collapse.
- Wirecard Seeks Forensic Investigation Into Its Collapse | PYMNTS
By PYMNTS | July 21, 2020 ... Wirecard AG ... has hired a forensic team ... sources told Reuters. ... Wirecard has contracted with Alix Partners.
Wirecard entered the Neuer Markt stock market segment
Wirecard did not enter the market in the Neuer Markt segment. InfoGenie had already moved from Neuer Markt to Prime Standard in 2003, and Wirecard’s shares were listed on Prime Standard in 2005 under the new name.
Full reasoning
This statement gets the listing segment wrong.
An official 2003 InfoGenie report says the company had already moved from Neuer Markt to Prime Standard on February 4, 2003. A later 2005 annual report then states that, after the reverse-IPO restructuring and renaming, Wire Card AG’s stock was listed on the Prime Standard of the Frankfurt Stock Exchange.
So while InfoGenie had once been a Neuer Markt company, Wirecard itself did not enter the market in the Neuer Markt segment through that reverse IPO; by then the relevant listing was in Prime Standard.
2 sources
- InfoGenie Europe AG report (Deutsche Börse-hosted)
the move from the Neuer Market to the new Prime Standard segment on February 4, 2003 is likewise expected to have made a difference.
- Wire Card AG Annual Report 2005
Since March 14, 2005, the company’s stock has been listed under a new name as Wire Card AG on the Prime Standard of the Frankfurt Securities Exchange.