Investor group files criminal complaint against EY auditors

Letters from payment service provider Wirecard can be seen on a laptop screen

Silas Stein | image alliance | fake pictures

German shareholders association SdK has filed a criminal complaint against the auditors of the outrageous payments firm Wirecard.

SdK’s complaint is directed at two current and one former employee of Wirecard, EY Germany’s long-standing auditors.

Last week’s accounting refused to close Wirecard accounts in 2019 after discovering that € 1.9 billion ($ 2.1 billion) of cash had disappeared from its balance sheet.

Munich-based Wirecard filed for bankruptcy on Thursday, marking a tumultuous drop for the group. Wirecard, still listed on the DAX 30, has seen its share price capitulate since the accounting black hole was revealed last week.

EY told CNBC on Thursday night that there were “clear indications that this was an elaborate and sophisticated fraud, involving multiple parts of the world in different institutions, with a deliberate goal of deception.”

In an attempt to defend its reputation, the group added that “even the most robust and widespread audit procedures” were unable to discover what it called “collusive fraud.”