Wirecard scandal timeline details continue to evolve. But news of the payment processing fraud has already reverberated shock-waves across Europe and the world.

The German company is accused to fabricating the presence of $2b in cash revenues on its balance sheet. When the scandal was uncovered, the firm entered bankruptcy proceedings in Munich and the stock price collapsed.

Below are the links to 15 Wirecard timeline scandal primary source documents you can use to get a deeper understanding of the situation:

1. On February 18th, 2019 BaFin, Germany’s Financial Watchdog, bans taking a net short position in Wirecard until mid-April fo that year due to the presence of “adverse events and/or developments which constitute a serious threat to market confidence in Germany: in recent days, massive uncertainties have been observed on the financial markets.”BanFin website

2. On March 26th, 2019, Singapore based law firm Rajah & Tann releases a report following an investigation into Wirecard’s Singapore subsidiaries. It concludes “the review has not revealed findings of criminal liability under Singapore law in respect of the headquarters of Wirecard in Munich/Aschheim.”Rajah & Tann report

3. On April 15, 2019 BaFin imposes a 1.52€ administrative fine on Wirecard for “[having] failed to make its half-yearly financial report for the financial year of 2018 publicly available in full within the prescribed period.”BaFin website

4. On April 21, 2020 Wirecard releases a statement reasserting its commitment to corporate responsibility. — Wirecard statement

5. On April 27th, 2020 KPMG releases the results of an audit of Wirecard’s accounts. In the conclusion, it states: “With regard to the amount and existence of revenues from the TPA business relationships between Cardsystems Middle East, Wirecard UK & Ireland, as well asWirecard Technologies and the respective relevant TPA partners, KPMG can, as a result of the forensic investigation conducted in relation to the investigation period 2016 to 2018, neither make a statement that the revenues exist and are correct in terms of their amount, nor make a statement that the revenues do not exist and are incorrect in terms of their amount.”KPMG report

6. On April 28th, 2020, Thomas Eichelmann, Chairman of the Supervisory Board of Wirecard, issues a statement calling on CEO Marcus Braud to step down due to the fact that “Wirecard’s management did not provide KPMG with the necessary documentation to verify TPA revenues in the period of 2016to 2018and to verify cash balances amounting to €1 billion in ‘trustee accounts'”. — TCI Fund letter

7. On May 3, 2020 Wirecard, after having received the results of the KPMG audit, released a statement stating “Following the investigation conducted by KPMG, in addition to the aforementioned compliance and organizational deficiencies, which were justifiably stated, it must be noted that none of the accusations and suspicions circulating publicly since January 30, 2019, have been confirmed.”Wirecard statement

8. On May 12, 2020, TILP Rechtsanwaltsgesellschaft mbH (TILP), a German law firm, filed an investor lawsuit against Wirecard “on the basis of its firm legal conviction that Wirecard AG is liable to compensate its stockholders for damages in light of a number of incorrect or incomplete disclosures to the capital markets, respectively for its failure to make such disclosures.”TILP press release

9. On June 18th, 2020, Wirecard announced its publication of annual and consolidated financial statements for 2019 would be delayed, despite insisting “no sufficient audit evidence could be obtained so far of cash balances on trust account”. — Wirecard press release

10. On June 19th, 2020, Wirecard announced CEO Markus Braun had stepped down from the board of directors “with immediate effect”. — Wirecard press release

11. On June 25th, 2020, Wirecard announced it “decided today to file an application for the opening of insolvency proceedings on behalf of Wirecard AG at the competent Munich Local Court due to the threat of insolvency and over-indebtedness.”Wirecard press release

12. On the same day, Wirecard requested to have its Form F-6 rescinded by the Securities and Exchange Commission (SEC). — SEC Website

13. After Wirecard filed for insolvency, German legal firm Schirp & Partner, which is overseeing a lawsuit against Wirecard’s auditor Ernst & Young, stated that “Unfortunately, this development was foreseeable. It is frightening how long Wirecard AG was able to operate without being objected to by the auditors.”Schirp & Partner website

14. In justifying its lawsuit against Ernst & Young, Schirp & Partner stated that “after examining the legal situation, Schirp & Partner comes to the conclusion that the certificates could probably not have been issued without a breach of an auditor’s auditing obligations”. — Schirp & Partner website

15. On June 29th, 2020, the United Kingdom’s Financial Conduct Authority (FCA) announces that, despite the scandal, it will allow Wirecard to resume regulated activity and to “resume issuing e-money and providing payment services” following earlier restrictions. — UK Financial Conduct Authority press release

For a complete breakdown of the wirecard scandal timeline, see the Financial Times Youtube video below:

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