Our sister site FinTelegram has pointed out many times over the last two years that the German FinTech champion Wirecard has been the financial heart of the international scammer scene. The former Wirecard CEO Markus Braun and his COO Jan Marsalek, for example, have maintained excellent relations with the fraudulent Israeli binary options scammer scene. Most recently, the Financial Times carried out a nice analysis based on a Wirecard client list established in H1 2017 that was leaked to it. According to this analysis, only 0.05% of the customers accounted for more than 40% of Wirecard’s sales revenues. In very simple words – a few big names brought Wirecard the big chunk of its business in 2016/17. Bravo, we knew this already!
One of these “big chunk” providers was the Israeli king among the binary options scammers operating in Europe – David Cartu, assisted by his brothers Jonathan and Josh. The Canada-born David Cartu with his GreyMountain Management Ltd (GMM), a company registered in Ireland with the headquarters in the very same office building in Dublin that was also home to Wirecard UK & Ireland.
This GMM acted as Wirecard’s so-called Third-Party Acquirer (TPA). TPA is a noble description for an off-the-Wirecard-records-company that acquired clients and payment volumes that did not have to conduct KYC/AML checks. GMM has in fact acquired dozens of binary options scams for Wirecard as so-called merchants and forwarded their payment transaction volumes from the fraud of small investors to Wirecard. GMM and its network of scams have probably contributed several hundred million euros to the Wirecard volume in 2016. And GMM is only one example for Wirecard customers.
The international scammer scene will definitely miss Wirecard. It will probably no longer be so easy to gain access to the international financial system. Many of the big scammers have also been loyal shareholders of Wirecard for a long time, but have recently taken flight. Thus, the end of Wirecard was sealed. A new start without the scam business will only be possible with difficulty. Or not be possible at all.