As the end of June 2020 Wirecard a DAX- listed Financial Service Company imploded. Wirecard has enabled fraudsters to receive and distribute illegal funds for more then two decades.
They played a crucial part for the explosion of Cybercrime in E started back in 2016 when the founder of Fintelegram met the German Uwe Lenhoff, who is currently arrested in Saarbrücken, Germany on charges of binary options fraud. Back then, Lenhoff was a respected online entrepreneur and the FinTelegram founder had no idea that Lenhoff was a close business partner of Wirecard, a company he has heard off sometimes but just on the sidelines.
When the business relationship between Werner Boehm and Uwe Lenhoff went sour and finally ended in Uwe Lenhof´s arrest in January 2019, EFRI started to work with victims of the investment scams orchestrated by Lenhoff and his Israeli and Serbia friends. As a matter of fact very often Wirecard showed up in the payment documents of the victims. Hence, we started to investigate and found the involvement of Wirecard in many investment scams and especially in the big binary options and FOREX scams.
Most prominently, the Irish Grey Mountain Management Ltd (GMM) of the Israeli David Cartu and his brothers popped up with dozens of scam brands and tens of thousands of victims. Wirecard UK & Ireland CEO Michelle Molloy plaid a critical part in the GMM fraud being one the big payment processor and acquirer. Many other binary options and broker brands too used Wirecard as a payment processor and or acquiring bank. Just to name 24Option, HandelFX, AlgoTechs/Bealgo, MarketsTrading, and many, many more. Wirecard enabled the transfer of the stolen funds to the fraudsters and the beneficial owners behind the scams. For 24Option probably one of the biggest scam still going on, Wirecard is or was something like the “main” bank.
Wirecard provided payment processing services to cybercrime organizations via offshore constructions and shell companies on large scale.
Once we recognized the role of Wirecard as one of the big payment processors for scam businesses, we started to investigate even deeper into the case. We quickly realized that Wirecard is something like THE “Payment Processing Hub” for scammers and financial cybercrime perpetrators. Unbelievable but true – this happened in plain sight and under the nose of the German regulator BaFin and signed off by EY since 2009!
In February 2020, we finally filed a comprehensive money-laundering complaint against Wirecard and shared our findings also with the BaFin people
In case you are interested in getting the enclosures pls let us know.
We know that during the years several correspondence banks of Wirecard filed money laundering complaints against Wirecard for big amounts (three-digit million amounts) showing Wirecard´s deep involvement in frauds and illegal business. Not a single one of these money-laundering complaints have been properly treated by BaFin and the German #FIU.
So the Wirecard fraud case was not really a surprise for us but we think the involvement of Wirecard in illegal business activities is not yet on the table. But we will try to do our best to bring them on the table and to hold everyone responsible who was involved in the ripping off of thousands of small investors who trusted the German authorities to do their job properly.