One thing is crystal clear in the convoluted labyrinth of justice: nothing works without money. This truth has become glaringly evident in the ongoing fraud trial of former Wirecard CEO Markus Braun. Braun lost his main defense attorney due to financial constraints as the bankruptcy scandal unfolds. Attorney Alfred Dierlamm resigned from the case, citing the exhaustion of the fee budget provided by the manager liability insurance. In simpler terms, the money pot is empty.
Dierlamm, a prominent figure in high-profile economic cases such as the VW diesel and Cum-Ex scandals, emphasized that his departure was purely an economic decision. “We would like to emphasize that the termination of the mandate is based exclusively on economic considerations and not on reasons related to the case itself,” Dierlamm and his colleague Elena-Sabella Meier clarified in a letter to the court, as reported by German media outlet Handelsblatt.
The former millionaire, now stripped of his primary legal defense, will be represented by court-appointed lawyers funded by state resources. Theres Kraußlach, who joined Braun’s defense team prior to the trial’s commencement in December 2022, has taken the lead role. The court’s judgment, expected next year, will determine who will ultimately bear the trial’s costs.
Read our Wirecard reports here.
Wirecard, once a DAX-listed company, spectacularly collapsed in 2020 when it was discovered that €1.9 billion were missing from trust accounts in Asia—an event marking one of Germany’s most significant financial scandals post-WWII. Braun is charged with fraud, balance sheet falsification, market manipulation, and embezzlement. While Braun staunchly denies these allegations, the courtroom drama intensifies with a co-defendant, Oliver Bellenhaus, turning key witness and another maintaining silence.
Braun and numerous other former Wirecard executives are embroiled in a myriad of criminal and civil proceedings stemming from this debacle. The financial burden of these cases was largely shouldered by the insurer Chubb through a Directors and Officers (D&O) insurance policy. According to legal representatives, Chubb disbursed approximately €17 million across various proceedings. This financial drama also played out in multiple courtrooms, involving fee disputes with other D&O insurers like Swiss Re. Dierlamm’s resignation follows a legal defeat in Frankfurt at the end of March, where Braun’s lawyers lost a dispute against Chubb.
As Braun’s courtroom saga continues, the loss of his high-profile defense lawyer underscores a harsh reality in legal battles: without money, navigating the justice system becomes significantly more arduous.
