German prosecutors suspect that money from Wirecard AG was embezzled into partner companies in the form of unsecured loans after it was accused of balance sheet manipulation, the Financial Times reported, citing people familiar with the probe and a document.
These loans are the focus of the investigation by German prosecutors against the firm's executives, including former CEO Markus Braun.
The payments firm gave out about €155 million in the first quarter, a major portion of which was lent to two Singapore-based companies, Ocap and Ruprecht Services, according to the report. Ocap was reportedly run by the husband of Brigitte Häuser-Axtner, director of Wirecard Asia, the subsidiary that was making the loans to Ocap.
The ultimate owner of Ocap is unclear, the report said. A KPMG report shows 100% is held by Delphinium Capital, which is based on the Isle of Man. Wirecard's former COO, Jan Marsalek, told KPMG during its special investigation of the payments firm that Delphinium was ultimately owned by Swiss Life (Singapore) Pte. Ltd., the newspaper reported
However, Swiss Life Holding AG told the daily that its unit held a stake in Ocap's parent company through a unit-linked life insurance product. The insurer refused to reveal the ultimate beneficial owner of the company and said the owner had "no visible connection whatsoever to Wirecard or any connected companies."
Dubai-based Al Alam, Manila-based PayEasy and Singapore-based Senjo also received unsecured loans in the first quarter from Wirecard, FT reported.
Meanwhile, the owner of PayEasy Solutions, who was under investigation by Philippine authorities in relation to the collapse of the payments firm, has been reported dead, according to the Financial Times.
Christopher Bauer, the owner of Philippines-based PayEasy Solutions, one of Wirecard's biggest sources of stated profits, was reported dead at a Manila registry in the week ended Aug. 1, according to the newspaper.
However, the Philippine secretary of justice, Menardo Guevarra, told the newspaper that he had not determined if the deceased is the person being investigated in the Wirecard case.
Guevarra also claimed that Bauer received an inward remittance from Wirecard Asia for consultancy services in 2015.
Additionally, German prosecutors said they have not received any official notice regarding Bauer's death.
Wirecard filed for insolvency in June after revealing a €1.9 billion hole in its balance sheet. The firm also revealed that its Asian outsourced operations, including PayEasy Solutions, had been misrepresented to investors.