{"id":1642794,"date":"2022-04-06T12:00:10","date_gmt":"2022-04-06T16:00:10","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=208292"},"modified":"2022-04-06T12:00:10","modified_gmt":"2022-04-06T16:00:10","slug":"accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case","status":"publish","type":"station","link":"https:\/\/platogaming.com\/plato-data\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case\/","title":{"rendered":"Accounting Firm EY Could Be Liable for $2B in Alleged Wirecard Fraud Case"},"content":{"rendered":"\n<p>Germany-based Wirecard was once one of the largest payment processors for the global online gaming space. Its strength was an apparent farce, however, that could impact accounting firm EY by almost $2 billion.<\/p>\n<figure id=\"attachment_208291\" aria-describedby=\"caption-attachment-208291\" data-style=\"width: 2062px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-208291 size-full lazyload\" src=\"https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case.jpg\" data-src=\"https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case.jpg\" alt=\"EY Deutschland\" width=\"2062\" height=\"1277\" data-srcset=\"https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case-1.jpg 2062w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case.jpg 142w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case-2.jpg 1024w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case-3.jpg 80w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case-4.jpg 768w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case-5.jpg 1536w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case-6.jpg 2048w\" sizes=\"(max-width: 2062px) 100vw, 2062px\" \/> <noscript><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-208291 size-full\" src=\"https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case-1.jpg\" alt=\"EY Deutschland\" width=\"2062\" height=\"1277\" srcset=\"https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case-1.jpg 2062w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case.jpg 142w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case-2.jpg 1024w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case-3.jpg 80w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case-4.jpg 768w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case-5.jpg 1536w, https:\/\/platogaming.com\/wp-content\/uploads\/2022\/04\/accounting-firm-ey-could-be-liable-for-2b-in-alleged-wirecard-fraud-case-6.jpg 2048w\" sizes=\"(max-width: 2062px) 100vw, 2062px\" \/><\/noscript><figcaption id=\"caption-attachment-208291\"class=\"text-description\">EY&#8217;s offices in Germany look impressive. However, the company&#8217;s previous accounting methods result in many unanswered questions. (Image: EY)<\/figcaption><\/figure>\n<p>Wirecard was an angel for the online gaming industry in the not-so-distant past. It processed massive amounts of transactions for gaming operators, as well as for other companies. However, the company&#8217;s rise to fame and its $25-billion valuation was apparently built on nothing more than false claims and fraud.<\/p>\n<p>When the <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/wirecard-disgraced-payment-processor-accused-of-transaction-laundering-for-online-gambling\/\">truth surfaced<\/a>, the house of cards fell apart. Some companies lost their holdings and investors lost their investments. A new initiative is underway to find relief for some, with accounting firm EY now on the hook for Wirecard&#8217;s apparent deception.<\/p>\n<h2>Cooking the Books<\/h2>\n<p>Wirecard got away with its ruse for so long because it successfully cooked the books. It made everything look so legitimate that it allegedly fooled number-crunchers at EY. That&#8217;s not enough to keep the company out of trouble now, though, and it could ultimately pay for Wirecard&#8217;s alleged thievery and cons.<\/p>\n<div class=\"callout\">\n<p>Better Finance, an investor campaign group out of Europe, is launching a foundation to try to recuperate as much as \u20ac1.15 billion (US$1.64 billion), according to <em>Reuters<\/em>. The entity chose the Netherlands to establish the foundation, looking to recover funds for 30,000 victims.<\/p>\n<\/div>\n<p>Operating at no cost to investors, the foundation will go after EY Global. It will also target EY Germany and other EY entities involved in Wirecard&#8217;s audit. It received support from DSW, an investor organization out of Germany, to launch.<\/p>\n<p>DSW Managing Director Marc Tuengler asserts that establishing the organization as a Dutch foundation could lead to EY deciding to settle &#8220;for all injured Wirecard investors in Europe.&#8221; He added that it &#8220;offers options that are not available under German law&#8221; but didn&#8217;t specify what those options are.<\/p>\n<h2>EY Should Have Known<\/h2>\n<p>Investors believed the Wirecard story because of the steady growth in sales and profits. EY accountants certified the company&#8217;s documents as valid for more than a decade.<\/p>\n<p>After the bankruptcy, there were growing doubts about EY&#8217;s audits. The so-called Wambach Report, the result of an investigation by Germany, clearly demonstrated that EY had consistently failed to follow basic principles of auditing.<\/p>\n<p>In action brought by shareholders against <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/german-prosecutors-lay-out-charges-against-former-wirecard-ceo-accused-of-fraud\/\">Markus Braun<\/a>, the former CEO of Wirecard, and EY Deutschland, the Munich Court issued a reference order for capital investor model proceedings against Braun and EY Deutschland.<\/p>\n<p><strong>The Bavarian Supreme Court will now decide if it will move the case forward. However, it is impossible to initiate proceedings against EY Global.<\/strong><\/p>\n<p>German law firm Nieding+Barth is also assisting the recovery efforts. The firm&#8217;s Klaus Nieding is ready to take whatever necessary action and sent a warning to EY. If the company doesn&#8217;t want to settle the dispute amicably, it will launch a lawsuit funded by Better Finance.<\/p>\n<p>The post <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/accounting-firm-ey-could-be-liable-for-2-billion-in-wirecard-fraud-case\/\">Accounting Firm EY Could Be Liable for $2B in Alleged Wirecard Fraud Case<\/a> appeared first on <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\">Casino.org<\/a>.<\/p>\n<ul class=\"plato-article-bottom-links\">\n<li><a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.coinsmart.com\/europe\/?irclickid=yCMxLCU1uxyLWzG0Rw0UrUzuUkEV0C2N%3ATwq0A0&#038;irgwc=1\" class=\"plato-coinsmart-gid\">Coinsmart. Europe&#8217;s Best Bitcoin and Crypto Exchange.<\/a><\/li>\n<li><a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/platoblockchain.com\" class=\"plato-blockchain-gid\">Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. FREE ACCESS.<\/a><\/li>\n<li><a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/app.cryptohawk.ai\/signup?via=Platodata&#038;_ga=2.197340463.1063417679.1638720459-1786082276.1633102604\" class=\"plato-cryptohawk-gid\">CryptoHawk. Altcoin Radar. Free Trial.<\/a><\/li>\n<li><a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/accounting-firm-ey-could-be-liable-for-2-billion-in-wirecard-fraud-case\/\">Source: https:\/\/www.casino.org\/news\/accounting-firm-ey-could-be-liable-for-2-billion-in-wirecard-fraud-case\/<\/a><\/li>\n<\/ul>\n","protected":false},"author":1,"featured_media":1642795,"template":"","meta":{"_eb_attr":"","type":"","auto_type":false,"post":"","stream":"","stream_url":"","waveform_data":[],"duration":0,"bpm":0,"downloadable":false,"download_url":"","purchase_title":"","purchase_url":"","post-count-all":0,"like_count":0,"download_count":0,"editor_note":"","copyright":"","captions":[]},"genre":[102],"artist":[106],"mood":[],"activity":[],"station_tag":[3785,12801,8724,5236,3620,6114,6116,12559,9347,3788,6084,3875,3790,12466,5588,5387,5807,5926,3795,3632,13280,6348,5458,7976,5831,6052,12931,10376,5460,12093,9851,3807,3638,3746,3808,6419,8728,8632,3814,177,6304,5521,5522,5406,3819,3820,5733,3643,3715,5983,5469,7746,6126,5414,6327,6328,5836,3646,3648,12641,6008,6009,5616,3719,6390,5420,12550,3657,8967,5538,3754,3755,5540,5480,3834,5880,3757,5426,5761,6069,3673,5777,5742,5440,3675,3837,3681,5272,12280,3684,8264,8410,5636,3690,5550,6313,7503,3697],"_links":{"self":[{"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/station\/1642794"}],"collection":[{"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/station"}],"about":[{"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/types\/station"}],"author":[{"embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/users\/1"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/media\/1642795"}],"wp:attachment":[{"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/media?parent=1642794"}],"wp:term":[{"taxonomy":"genre","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/genre?post=1642794"},{"taxonomy":"artist","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/artist?post=1642794"},{"taxonomy":"mood","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/mood?post=1642794"},{"taxonomy":"activity","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/activity?post=1642794"},{"taxonomy":"station_tag","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/station_tag?post=1642794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}