Braun resigned Friday after the German payment service provider said auditors couldn’t find 1.9 billion euros of cash on its balance sheet.
Former Wirecard CEO Markus Braun has been arrested on charges of inflating the company’s balance sheet, prosecutors in Munich said on Tuesday.
Braun resigned on Friday after the German payment service provider said auditors at EY couldn’t locate 1.9 billion euros ($2.1 billion) of cash on its balance sheet. On Monday, the company said it was likely that those funds do not exist.
Prosecutors said that Braun turned himself in on Monday evening and would be brought to an investigating judge on Tuesday, who will then decide whether he should remain in custody.
Wirecard was not immediately available for comment when contacted by CNBC on Tuesday.
Braun is accused of having inflated Wirecard’s total assets and sales volume through „feigned income“ from transactions with third parties to make the company appear more attractive to investors and customers, prosecutors said.
