Former Wirecard CEO Markus Braun has been in custody for four years, and for over a year and a half the Munich I Regional Court has been trying to shed light on the largest German fraud case since 1945. After 137 days of trial so far, a verdict is not in sight.
On today’s 138th day of the trial, the previously silent former chief accountant of the group will comment on the charges for the first time. The court offered the accounting expert a deal with six to eight years in prison in the event of a full confession in the largest German fraud case since 1945.
Apology in court, no confession
The former head of accounting, Stephan von Erffa, admitted at the beginning of his two-day statement that he had made mistakes that he regretted and for which he wanted to apologize. However, he also stressed that he had not enriched himself personally and had always wanted the best for the company.
In addition, he only dealt with a lot of things very briefly and relied on the specialist departments. “I had a lot of topics on the table and felt like a juggler who was completely occupied with making sure no ball fell down,” he said, describing his work. He didn’t have time to deal with the individual balls in more detail. But today he realizes that he should have stopped and done so.
Manager Oliver Bellenhaus, who is appearing in court as a key witness and incriminating the two co-defendants, is “good at lying and twisting things around,” said von Erffa in his self-written statement. He attributed his co-defendant’s “zeal to incriminate” to the fact that he was jealous of his title and salary. He also “annoyed” him with his requests for evidence – probably also because Bellenhaus then had to falsify it.
The public prosecutor was “a little bit disappointed” by the statements. The defense of the also accused ex-Wirecard-Boss Markus Braun, however, was satisfied. The statement supported the information provided by his client.
“Not the time and energy to question everything”
Overall, the defendant painted a picture of poor staffing, poor processes and an overwhelming workload. “It was actually always the case that two people wanted something from me at the same time,” he said, describing his typical working day. There was a lot of time pressure, especially when it came to the annual financial statements. “You don’t have the time or the energy to question everything. That’s what the specialist department is for,” he said. You have to be able to trust their information. Often, their answers were just passed on to the auditors. “If they were happy with it, we were too.”
Stephan von Erffa did not initially comment on the third-party business, which played a central role in the collapse of Wirecard. However, he did limit expectations at the beginning of his statement. This was not the focus of his work, and he only had a lot of information regarding it from hearsay. He might only talk regarding “many years at his desk” at Wirecard.
The former chief accountant has been in the dock since December 2022, together with former Wirecard CEO and Austrian-born Markus Braun and manager Oliver Bellenhaus, who used to work for Wirecard in Dubai. Former Wirecard sales director and Austrian, Jan Marsalek, is still on the run.
In June 2020, Wirecard had to file for bankruptcy because the payment service provider was missing 1.7 billion euros: The money was recorded in the group’s balance sheet, allegedly deposited in trust accounts in the Philippines – but might not be found anywhere.
Charges of breach of trust, market manipulation and gang fraud
In spring 2022, the Munich I public prosecutor’s office finally brought a 474-page indictment containing several criminal offenses: misrepresentation due to false company balance sheets, breach of trust due to granting loans without collateral, market manipulation due to providing false information to the financial market and – the most serious allegation – commercial gang fraud.
The top management of a German DAX company is said to have acted as a criminal gang in order to rip off the lending banks. The public prosecutor’s office estimates the damage at a good three billion euros. The majority of the fictitious transactions are said to have been booked in the Middle East and Southeast Asia via the three partner companies Al Alam, Senjo and Payeasy, which allegedly processed credit card payments on behalf of Wirecard.
The main defendant is the former CEO Braun. According to the prosecution, he is said to have specified the amount of the false figures published by the company. Braun staunchly denies all allegations. The prosecution’s key witness is Bellenhaus, who, in his own words, was the “rainmaker” in the company. In contrast to his former superior, Bellenhaus largely admits the charges. Both accuse each other of lying. This is another reason why the testimony of Erffa’s former chief accountant is so important.
Billions missing
Former CEO Braun has stated several times that the company’s business – and the billions in sales – were not invented, but real. According to Braun’s account, the missing sales director Jan Marsalek, Bellenhaus and other accomplices were the real fraudsters who stole billions from the company and diverted them to their own accounts.
The court scheduled trial days until shortly before Christmas. A very important witness has yet to be heard: insolvency administrator Michael Jaffé. In his research, he has so far found no trace of the missing billions, of whose existence Braun is convinced.
