The Wirecard Case – German Watchdog Files Criminal Complaint Against Financial Times Journalists

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The stock of the German FinTech giant Wirecard does not come to rest. Following reports by the Financial Times (FT) and other analysts about accounting manipulations and money laundering in the Wirecard network, the public prosecutor’s office in Munich has already started investigations against Financial Times journalists and analysts. The German regulator and prosecutors suspect market manipulation in connection with the short selling of Wirecard shares. The German magazine SPIEGEL Online reports that BaFin has filed a respective criminal complaint. According to BaFin, journalists and speculators are said to have conspired to depress the price of the Wirecard share.

Financial Times Journalists Charged

The German financial supervisory authority BaFin has filed a complaint with the public prosecutor’s office in Munich against about a dozen persons. Specifically, BaFin targets two FT journalists and several short-sellers which are said to have manipulated the price of the Wirecard share in the form of a so-called short attack. BaFin confirmed this to SPIEGEL.

A few weeks ago, BaFin already issued a “short selling” ban on the Wirecard share. A unique event in the history of the European capital market. The BaFin suspects journalists of the FT of having colluded with investors. An outrageous accusation against the renowned business medium.

BaFin suspects that speculators have already built up short selling positions before the publication of articles in the Financial Times. In a short sale, investors borrow shares in a company, for example from a fund or a bank. They sell the borrowed shares in order to buy them back cheaper later and return them to the lender. If the prices actually fall, they can take the difference as a profit.

The Financial Times rejects all allegations and confirms the research results of its journalists:

Any allegation against the FT or any of its reporters or staff of market manipulation or unethical reporting in relation to Wirecard is baseless and false. It is a smokescreen obscuring the serious allegations that were revealed by the FT.

Financial Times statement on the BaFin complaing

On January 30, 2019, the Financial Times published an article in which serious accusations were made against Wirecard. Employees of the Munich-based company in Asia are said to have faked sales, falsified contracts and thus cooked up the balance sheets. After publication, the Wirecard share temporarily lost more than eight billion euros in value on the stock exchange. In the weeks that followed, the Financial Times published further articles on Wirecard in which the accusations were partly repeated, but also clarified and expanded. According to Spiegel Online, it is currently open whether there will be an indictment.

Wirecard Involvement In Binary Options Fraud

Regardless of the Financial Times reports, the FinTelegram research team has been investigating Wirecard’s involvement in the gigantic Worldwide Binary Options Fraud over the past few weeks. It has already been established that the management of Wirecard UK & Ireland has made common cause with some Israeli masterminds behind the fraud vehicle GreyMountain Management of the Israeli brothers David Cartu and Jonathan Cartu. Moreover, FinTelegram was able to gather evidence in the involvement of Wirecard in the payment services of binary options fraud schemes other than GreyMountain:

Another FinTelegram report will be published shortly.

According to the U.S. FBI, binary options have cheated retail investors by up to $10 billion annually until the 2017/2018 ban. GreyMountain Management was a pioneer in this fraudulent industry and has operated numerous illegal binary options platforms. Should the suspicion of Wirecard‘s involvement in the binary options fraud industry be confirmed, the shares of the German FinTech company could still face difficult times.

Neither FinTelegram nor any of its involved people own Wirecard shares and/or are involved in any short-selling transaction.

  1. katrina says:

    Barking up the wrong tree, the FT are correct, I have info on the Cartu brothers and their involvement in wirecard, they are crooks, this is a smokescreen most likely paid for by the Cartu’s to discredit the article the journalists did.

    1. fintamir says:

      Hi Katrina, we are aware that the GreyMountain Management (GMM) & binary options scheme around Wirecard is just tiny chunk. However, we already received complaints from many binary options victims around the GMM schemes. So we do our best to focus on that and on the Role of the “Cartu Brothers”.

      While we agree with you that Financial Times (FT) is on the right track we at this stage would like to work through the case of the binary options. There are thousands of victims of GMM- and hence Wirecard-related binary options platforms.

      Maybe these branches of the Wirecard tree are finally intertwined. Who knows?!

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