Wirecard AG update

German prosecutors rejected the criminal investigation of former Deutsche Bank supervisory board member Alexander Schütz on allegations of insider trading in Wirecard stock.

The Stuttgart prosecutor said on Monday that after evaluating the complaint, they decided not to launch a formal investigation. Archive Released in April by BaFin, a German financial regulator.

The authorities stated that the evidence provided by BaFin does not justify the initiation of the investigation.

BaFin and Schütz declined to comment on the decision first reported by Reuters.

Schütz, a close friend of former Wirecard CEO Markus Braun, has been detained by the police for more than a year after the Munich-based payment company went bankrupt in one of Germany’s largest accounting frauds and lost 1.9 billion euros in corporate cash.

He is also an old friend and business partner of the financier Christian Angermayer. intermediary Japan’s SoftBank Group invested 900 million euros in Wirecard in 2019.

People familiar with the matter told the Financial Times in April that BaFin stated in its criminal proceedings that it suspected that Schütz had repeatedly used inside information when trading Wirecard stock in 2019 and 2020.

Schütz resigned from the board of directors of Deutsche Bank in May after he was publicly accused of controversial comments in a personal email to Braun more than two years ago.

After the British “Financial Times” disclosed the Wirecard investigation of the Singapore whistleblower’s allegations in January 2019, Schutz urged Braun to “include this newspaper!!!” in an email, adding that he Recently purchased shares of the payment group.

After the parliamentary investigation into the Wirecard scandal made the email public in January, Schütz apologized for his “emotional and inappropriate remarks.” Deutsche Bank said this email was unacceptable.

When he announced his resignation in March, Schutz insisted that it had nothing to do with the controversy surrounding email.

Schütz joined the board of directors of Germany’s largest bank in 2017, when the Chinese conglomerate HNA started buying shares and eventually held a 9.9% stake, making it the bank’s largest shareholder.

HNA’s shares were acquired through a complex financing structure held by Schütz’s Vienna-based investment vehicle C-Quadrat and a series of offshore holding companies. The hard-hit Chinese group gradually withdrew its investment. Schütz once personally held the remaining ownership of HNA, making him briefly one of the top 20 shareholders of the bank.

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