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Wirecard Suspends Executive After EUR 1.9 Bln Cash Missing

Wirecard AG (WRCDF.PK) has suspended the member of the Management Board Jan Marsalek on a revocable basis, after revealing that auditors couldn't find about 1.9 billion euros in cash.

In addition, the company has appointed James Freis, Jr., 49, as member of the Management Board with immediate effect and thus earlier than July 1, 2020. He will be responsible for the newly created department "Integrity, Legal and Compliance".

Earlier today, Wirecard's auditor Ernst & Young informed the company that no sufficient audit evidence could be obtained so far of cash balances on trust accounts in the consolidated financial statements in the amount of 1.9 billion euros, about a quarter of the consolidated balance sheet total.

As a result, the company's 2019 consolidated financial statements will not be concluded as planned by June 18, 2020. If the financial statements cannot be made available until June 19, 2020, loans made to Wirecard amounting to about 2 billion euros can be terminated, Wirecard said.

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