Connect with us

News

Wirecard Round-Tripping Scam with Singapore & Luxembourg Companies

Carlos Haeuser, was not only a long-standing executive of Wirecard, but his wife, Brigitte Axtner Haeuser is Head of Digital Sales for Wirecard and a named director of WDAH in Singapore in the 2018 annual report.

As we’ve been searching for where Wirecard’s MCA business is (and the bulk of it looks not to be in Brazil, Turkey or Europe), we’ve come across a number of details that have made us take a second look at certain aspects of the business. There are some very odd coincidences and complicated relationships between Wirecard, its current and former executives, and third-party companies, many of which are suspicious in themselves, and, when taken together, raise yet more questions.

A company in Singapore, oCap Management, formerly called Senjo Trading, whose MD, Carlos Haeuser worked for 13 years at Wirecard as a senior executive, started claiming to offer merchant cash advance in Singapore in November 2018 at around the same time it received €115M ($131M) of funding from an unknown third party. (Coincidentally, this is also the time when Wirecard started talking about MCA). By the end of December 2018, €113M of these funds had been lent out by oCap, without any sales people and without any advertising spend, and with distribution expenses of just $38K.

Carlos Haeuser, was not only a long-standing executive of Wirecard, but his wife, Brigitte Axtner Haeuser is Head of Digital Sales for Wirecard and a named director of WDAH in Singapore in the 2018 annual report.

Carlos Haeuser, was not only a long-standing executive of Wirecard, but his wife, Brigitte Axtner Haeuser is Head of Digital Sales for Wirecard and a named director of WDAH in Singapore in the 2018 annual report.

Until 2017, oCap was involved in trade financing and ship management, but also referenced etrade finance and blockchain technology on their website. However with Carlos’ arrival, and promotion to MD on the 9th of November 2018, the business shifted track to offer MCA. Their level of success in just one month seems remarkable considering that, despite claiming to have facilitated $100M of loans in 2017 they had zero revenues in 2017 from interest income. Rather, in 2017 all revenues – on the basis of their audited accounts – were derived from ship management fees.

Following the €115M loan in late 2018, and in just 6 weeks, oCap somehow lent all that of money onwards in EUR, USD and GBP denominated loans from Singapore.

Furthermore in 1Q19, when Wirecard’s MCA program grew further to €400M, oCap formed a Luxembourg subsidiary that is described as “acquiring or assuming the risks associated with loans receivable”.

Why do we think this is interesting?

oCap has multiple close ties to Wirecard, making the timing of their MCA business launch interesting:

  • oCap was formerly known as Senjo Trading. Wirecard lent €25M to Senjo Group, a related business, in May 2017. Senjo was also widely reported as being a material driver of Wirecard revenues, EBITDA and receivables.
  • oCap’s CEO and MD, Carlos Haeuser had been a long-serving Wirecard executive, joining the firm in 2005 and promoted to EVP in 2010. He left the business in March 2018 to join oCap, although paperwork suggests there was some overlap between his time at Wirecard and oCap with his new appointment as director of oCap taking place on 5th March while he only officially left his previous roles as CEO of Wirecard Turkey and CEO of Wirecard Technologies on 15 March 2018 and 22 March 2018 respectively (Source ACRA).

Carlos Haeuser is the CEO of oCap, and was appointed a director on the 5th of March 2018.

On the 15th of March 2018 Carlos resigned as the Chairman of the board and MD of Wirecard Turkey (replaced as Chairman by Wirecard COO Jan Marsalek) (Source).

On the 22nd of March 2018, Carlos was removed as CEO of Wirecard Technolgoies Gmbh (Source).

  • Of course, it’s also interesting that Turkey is where Wirecard has previously claimed to be doing significant volumes of MCA despite their audited financials showing nothing of the sort and worth remembering that MCA is illegal in Turkey.
  • oCap has also had two auditor resignations so far in 2019. T Ravi, their auditor of 2016 and 2017 resigned in early February 2019 to be replaced by BDO, who resigned in July 2019 without signing the 2018 financials. They were replaced by the less well known OA Assurance who eventually signed the annual report in August 2019. Related party disclosures changed between the 2017 and 2018 accounts – perhaps this is why BDO did not sign the accounts?

While this could all be a coincidence, it is worth examining closely in light of the criminal “round-tripping” investigation that Wirecard is facing in Singapore, where the CAD is investigating Wirecard for allegedly moving money from its balance sheet to undisclosed related parties and then back as revenue, earlier in 2018 than the events described above. We think the CAD in Singapore should be aware of the suspicious timing and similarities of these events.

The FT has previously reported that Senjo (now oCap) had significant unpaid receivables at Wirecard and that a substantial portion of their revenues and EBITDA come from Senjo. It seems reasonable to conclude that Wirecard was the 3rd party that lent the €115M to Senjo. If any of this money has made it back to Wirecard to pay-off the receivables that are owed by Senjo/oCap – that would be round-tripping.

Wirecard claims that it is lending €370M via MCA. This number has fallen, since the previously stated €400M. They’ve also changed their statements regarding where this money is being lent, telling investors at the H1 results call that it’s now less than 1/3 in Brazil and Turkey. According to their CPO, it’s not in Europe. There aren’t a lot of places left it could be, and Wirecard refuses to disclose to investors where it is (contrary to Markus Braun’s statements re transparency).

Wirecard management told analysts and investors that they had no relationship with Ocap and that there had been no relationship with Carlos Haeuser since January 2018.

The accounts show a different story.

In November 2018, Ocap received an unsecured, euro-denominated €115.6M loan from an undisclosed party, which they managed to lend out entirely by year-end. Wirecard’s 2018 annual report states, when referring to merchant cash advance, “a volume of €115.6M was already earmarked for this purpose by powerful financing partners”. The newly filed WDAH reports show that Wirecard Asia borrowed from Wirecard Group in order to make an onward loan of €115.6M. A euro-denominated loan made in Singapore of the exact same amount as that received by a company with strong ties to Wirecard strongly suggests this is a loan to Ocap, contrary to management’s claims.

This report indicates that Wirecard has been untruthful in their communication with investors about a material transaction of >€100M.

Wirecard has misled investors about who this money was lent to, and they failed to disclose the fact that the loan appears to be a related-party transaction:

Image of Destination Guide

The Ocap CEO, Carlos Haeuser, was not only a long-standing executive of Wirecard, but his wife, Brigitte Axtner Haeuser is Head of Digital Sales for Wirecard and a named director of WDAH in Singapore in the 2018 annual report. In addition, Ocap/Senjo is an important client for Wirecard: in the Wirecard internal documents released by the FT, it is shown as the second largest customer of CardSystems Middle East (CME), Wirecard’s most profitable subsidiary.

It is also concerning that, within six weeks of making the loan, Wirecard made a €5M allowance for a potential loss. This stands out as an unusual allocation, particularly bearing in mind the relationship between Ocap and Wirecard directors. If Brigitte saw Ocap as such a credit risk, should WDAH have sanctioned lending the €115M to Ocap?

The loan was extended following the balance sheet date, with partial repayment of the loan extended until 2020. This would suggest the business is not doing as well as hoped. Were these late 4Q transactions an avenue to circulate money to CME and pay down the aged Senjo receivables referred to by the FT?

How useful was this post?

Click on a star to rate it!

Average rating 4.2 / 5. Vote count: 54

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

Advertisement
3 Comments

3 Comments

  1. Avatar

    ปั้มไลค์

    July 10, 2020 at 6:35 am

    Like!! I blog frequently and I really thank you for your content. The article has truly peaked my interest.

  2. Pingback: Jan Marsalek Ex-COO of Wirecard AG - Catch me if you Can

  3. Pingback: Singapore extends investigation into Wirecard Scandal with Citadel & Senjo Group

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Articles

chinagermanphd1000x600 chinagermanphd1000x600
Germany2 days ago

Chinese Guest Scientists in Germany are often Members of the Chinese Military PLA

China has long overtaken the United States as the leading nation in the number of scientific publications. In the list...

xitop xitop
Hong Kong2 days ago

Why does Beijing Risk Hong Kong’s Future as a Global Financial Center?

The new security law which punishes criticism of Beijing, is a threat to the financial center and the beginning of...

xiwuhanvirus4 xiwuhanvirus4
Hong Kong3 days ago

Tony Chung : First Arrests under new Security Law in Hong Kong

The former leader of a student group in Hong Kong has been arrested – 19-year-old Tony Chung is accused of...

Austria Austria
Austria4 days ago

Greed won – Ischgl in Austria has become Europe’s coronavirus breeding ground

Austria’s authorities have long failed to respond Many infections with the corona virus in Europe are said to be due...

coronavirus-vietnam1000x600 coronavirus-vietnam1000x600
Coronavirus4 days ago

Vietnamese city Da Nang flies 80,000 people out after 4 Corona Infections

After 4 new corona infections in the coastal city of Da Nang, the Vietnamese authorities let 80,000 people fly out of the metropolis. Most...

St. Wolfgang1000x600 St. Wolfgang1000x600
Austria4 days ago

Corona Infection Numbers in St. Wolfgang continue to rise

The number of corona infections in the tourist town in St. Wolfgang in Upper Austria has risen by eighteen to...

abtwerp1000x600 abtwerp1000x600
Belgium4 days ago

Belgium Significantly Tightened Corona Measures

Infection numbers in Belgium are increasing strongly again and the government has announced stricter contact restrictions to prevent another lockdown. As of...

Huaweimamibia1000x600 Huaweimamibia1000x600
Africa5 days ago

Corruption allegations in Namibian 5G deal with Huawei

A city councillor in Namibia’s capital has alleged she was offered a bribe by a local politician to ensure Chinese tech...

ussronaldreagon1000x600 ussronaldreagon1000x600
Australia5 days ago

Australia sent letter to the SG of the United Nations, refuting China’s sovereign position in the South China Sea

Australia stated to the United Nations that China’s sovereignty position in the South China Sea is not in conformity with...

presidentofestonia1000x600 presidentofestonia1000x600
News5 days ago

Eastern Europe changes its attitude towards Beijing

While Beijing vigorously promoted the 17+1 mechanism between China and Central plus Eastern Europe and actively implemented the One Belt...

alibabaofficebeijing alibabaofficebeijing
India5 days ago

Alibaba and Jack Ma summoned by Indian Courts to respond to Complaints

Court documents show that an Indian court issued subpoenas to more than a dozen individuals and companies including Chinese Internet...

Dickson Yeo1000x600 Dickson Yeo1000x600
News6 days ago

Singaporean pleads Guilty to Spying for China in the United States

A Singaporean man recently pleaded guilty to spying for Chinese intelligence services, the US Department of Justice announced Friday. The...

marsalek1000x600 marsalek1000x600
Germany1 week ago

Jan Marsalek, from a School Dropout to the Number 2 at Wirecard

Marsalek came to Wirecard at the age of 20. The tech-savvy school dropout had caught the interest of the Wirecard management...

grenadapassport1000x600 grenadapassport1000x600
Germany1 week ago

Breaking News : Jan Marsalek possible citizen of the Caribbean Island of Grenada with a New Name

According to German Intelligence sources, Jan Marsalek – an Austrian and former COO of Wirecard might carry a Diplomatic passport...

Germany1 week ago

Thanks to Wirecard Erotic Massage Services move to MyDirtyHobby, Pornhub & Big7

Massage Studio’s are moving to the Virtual Online Space thanks to Wirecard’s Bank and some porn portals registered in Cyprus,...

wirecard1000x600 wirecard1000x600
Germany1 week ago

Three new arrest warrants issued in the Wirecard Scandal

The public prosecutor has made great progress in investigating the Wirecard balance sheet scandal. Accordingly, the group has been in the...

masksallrubbish masksallrubbish
Coronavirus1 week ago

German Transport Minister Scheuer “Eleven million masks, all junk from China”

Medical protective material is currently a scarce commodity worldwide and that is why the procurement of FFP2 masks for Germany...

heikomaas1000x600 heikomaas1000x600
News1 week ago

Germany Announces Response to China’s Hong Kong Security Law

German Foreign Minister Heiko Maas, visited his British counterpart Dominic Raab in London on Wednesday. If necessary, Germany would implement...

Advertisement

Trending Now