Money Men

"Wirecard was everywhere in Singapore, its credit card readers on shop counters, restaurant tables and in taxi cabs, and its big deal with Citigroup was supposed to give it a similar presence all across Asia." From porn to payments.

"Wirecard was everywhere in Singapore, its credit card readers on shop counters, restaurant tables and in taxi cabs, and its big deal with Citigroup was supposed to give it a similar presence all across Asia." From porn to payments. Wirecard's origins were rooted in the murky world of online pornography and gambling. Founded by Paul Bauer-Schlichtegroll, the company initially focused on processing payments for high-risk industries. As it grew, Wirecard positioned itself as a fintech innovator, offering cutting-edge payment solutions and expanding globally. Smoke and mirrors. Under the leadership of CEO Markus Braun and COO Jan Marsalek, Wirecard crafted an illusion of rapid growth and profitability. The company used a complex network of subsidiaries and partnerships to inflate its revenues and profits, particularly in Asia. Key to this fraud were three partner companies - Al Alam, Senjo, and PayEasy - which were later revealed to be largely fictitious entities used to fabricate transactions and profits. A German tech champion. Wirecard's apparent success story captivated investors and regulators alike. It became a darling of the German stock market, eventually replacing Commerzbank in the prestigious DAX 30 index. This status as a national champion made it difficult for skeptics to challenge the company's claims and practices.

"I knew I'd have to learn the grubby business of reporting with sleeves rolled up and hands dirty." Persistent investigation. Financial Times journalist Dan McCrum spent years investigating Wirecard, facing numerous obstacles and threats. His work, along with that of colleagues like Stefania Palma, involved painstaking research, on-the-ground reporting, and cultivating sources within and around the company. Connecting the dots. The investigation required piecing together complex financial data, following paper trails across multiple countries, and uncovering the true nature of Wirecard's partnerships and subsidiaries. This often involved visiting remote locations to verify the existence of purported Wirecard offices or partners. Battling corporate pushback. Throughout their investigation, McCrum and his colleagues faced intense pressure from Wirecard, including legal threats, surveillance, and attempts to discredit their work. Despite these challenges, they persisted in publishing their findings, gradually building a compelling case against the company.

"The German authorities appeared to have better things to do than investigate the company." National pride blindness. German regulators, particularly BaFin, were slow to act on allegations against Wirecard, often viewing criticism of the company as attacks on a national champion. This regulatory inertia allowed the fraud to continue and grow for years. Jurisdictional complexities. Wirecard's global operations and complex corporate structure made it difficult…