Connect with us

News

Oliver Bellenhaus, EVP of Wirecard Card Solutions Ltd arrested – Shares collapse on DAX

Avatar

Published

on

Oliver Bellenhaus

While the fired Wirecard board member Jan Marsalek is still in hiding, another executive of the insolvent group has turned himself in. Oliver Bellenhaus, the Managing Director of Wirecard subsidiary Card Systems Middle East FZ LLC, and EVP of Newcastle based Wirecard Card Solutions Ltd has turned himself in to German authorities.

An arrest warrant has been issued against Bellenhaus, who has traveled to Munich from his home in Dubai and according to the prosecutor’s office, Bellenhaus was interrogated and detained.

Most recently, Wirecard CEO Markus Braun had turned himself over to the authorities, but had been released on a 5 million Euro bond.

The Dubai subsidiary of the company, which is still listed on the DAX, played a central role in the reports of the “Financial Times” on the balance sheet scandal at Wirecard. The subsidiary was responsible for an unusually high proportion of Wirecard’s operating profits, which in turn was due to the company’s high sales with its partner Al Alam Solutions. This company was repeatedly the focus of allegations that the DAX Group artificially inflated its business volume with tricks and thus reported excessive sales and results.

Al Alam Solutions was dissolved in the course of the KPMG audit, which made a significant contribution to finally causing the Wirecard card house to collapse – we reported. The company had apparently previously refused to work with KPMG. The auditor has already criticized the audit report that parts of the Wirecard partners did not provide any documents. An examination of these transactions was therefore not possible. KPMG itself spoke of an “obstacle to testing”. In the meantime, Wirecard’s auditor EY is questioning the Group’s entire third-party business. Much of this business was done through the “Connection” in Dubai and the United Kingdom.

Wirecard share price collapses

Wirecard lost almost 18 percent and closed at EUR 2.65 after doubts have arisen as to whether the core business of the payment service provider has even delivered the profits that the company has previously reported.

News like this, together with the news about more and more leaping away major customers and business partners, shouldn’t make life easier for the bankruptcy trustee Michael Jaffé: By selling parts of the company, he wants to at least get some money with which one can satisfy the creditors – that include the banks and bondholders. The situation is somewhat different for Wirecard Bank customers: According to the nine-month balance sheet, they had invested around 1.7 billion euros in the bank. Wirecard Bank is not yet insolvent, as Jaffé further emphasize, however, it remains to be seen how far customer deposits have flowed out in the past few days.

News

Holvi Mastercard temporarily suspended due to Wirecard insolvency

Wolfgang Holzem

Published

on

holvi-1000x600

Holvi Mastercard has been temporarily suspended due to recent events in connection with the insolvency of Wirecard AG

How did this happen?

The UK Financial Conduct Authority (FCA) has suspended service for Wirecard Card Solutions Ltd (WDCS) earlier today. WDCS is a subsidiary of Wirecard AG and issues the Holvi Business Mastercard. This decision was taken by the FCA without any prior notice.

What does this mean for you?

All other functions of your Holvi account are still fully available. You can still invoice, receive and transfer funds. Please be assured that all Holvi customer accounts and funds remain safe, secure and accessible at all times – no Holvi accounts have been impacted by this event. This is because all Holvi customer funds are segregated and held in separate accounts in European banks in Finland, Sweden, Denmark, the UK and France.

No customer funds are held by Wirecard AG. Your money and Holvi account are safe.

Your trust is our top priority. We’re actively working on a solution and will continue to update as soon as possible.

Continue Reading

News

Wirecard Board wants to continue Business in the UK and discussion are ongoing with the FCA

Wolfgang Holzem

Published

on

wirecard1000x6004

The payment processor struggling to survive a balance sheet scandal Wirecard, continues to do business despite the application for bankruptcy. “The board is of the opinion that a continuation is in the best interest of the creditors,” said the Dax group on Saturday in Aschheim near Munich.

The management board made an application for the opening of insolvency proceedings for Wirecard AG last Thursday.

According to the company, the examination of whether insolvency proceedings will be opened continues.

The business operations of the group companies including the licensed units are currently being continued, it said. It is constantly checked whether bankruptcy applications for subsidiaries of the Wirecard Group must also be made. Group companies, with the exception of a small development branch, have currently not filed for bankruptcy.

The Wirecard Bank is currently not part of the bankruptcy proceedings, the payment transactions of the Wirecard Bank are not affected, the company emphasized. Payments to Wirecard Bank merchants would continue to be carried out without restrictions. They are also “in constant communication with the credit card organizations”.

Wirecard Card Solutions has interrupted business

Wirecard Card Solutions Limited, based in Newcastle, “has interrupted its business due to an order from the responsible Financial Conduct Authority,” it said. However, Wirecard hopes to be able to continue operations in the UK with its current global B2B clients.

Current B2B clients include Payoneer, Hovi, Curve.

Measures for this are discussed currently with both the UK and German authorities.

Continue Reading

News

Thousand’s of Payoneer Mastercard Holders still Affected by Wirecard UK and can’t Access their Funds in Pakistan Bangladesh & Balkan countries

Avatar

Published

on

payoneer1000x600

Many of Payoneer’s millions of Freelancers have their freelance work paid into the card account, which is easier to open than a bank account in countries such as Pakistan, Bangladesh, Venezulea, Argentina and Balkan countries.

According to reports on Facebook, it is assumed that thousands’ of Payoneer Card holders are still unable to access their funds in Pakistan, Bangladesh and in Eastern European countries. Payoneer card holders within the European Union and certain countries outside the European Union face no restriction and AirBNB Host users are also able to withdraw funds, available on their cards.

Ring-fenced cash

Funds held by e-money firms like Wirecard are not guaranteed up to £85,000 as bank deposits are, although they are held in banks such as Barclays and will be safeguarded.

Payoneer has told customers: “Your funds are being held by Wirecard in a ring-fenced designated account with Barclays. This means in the event of Wirecard going bust you are protected.”

Even so, the FCA is anxious to make sure no money is siphoned off because of Wirecard’s collapse in Germany.

Christopher Woolard, the FCA’s interim chief executive, told the BBC’s Today programme the FCA had “imposed very strict conditions” on Wirecard’s UK subsidiary based in Newcastle, which had knock-on effects for about 70 payments firms, including some firms that operate out of the United Kingdom and the European Union.

Mr Woolard said the FCA had spent the last few days making sure money belonging to people in the UK and the European Union was now safeguarded in UK bank accounts with strict conditions.

The auditor of EB (Ernst & Young) signed of the full accounts made up to 31 December 2018 and according to the official Financial Statement, Wirecard Card Solutions Ltd held 465 million GBP in Customer Deposits.

WCSL has not filed the Financial Statement for 2019, but it is assumed that customer deposits of around 600 million GBP was frozen when the FCA suspended last week’s Wirecard operating in the United Kingdom.

Continue Reading

Trending Now

Copyright 1995 - 2020 by Isaan.live. All Rights reserved

Free counters!