Munich prosecutors have arrested a wirecard government whom ran the machine in the middle associated with the companys alleged fraud from his apartment in dubais burj khalifa.

Oliver bellenhaus, a 46-year-old sports vehicle lover, had been arrested on suspicion of aggravated fraud. he can stay static in authorities custody over concerns that he is a flight danger and will tamper with evidence, prosecutors said in a statement on monday.

He could be the second senior wirecard worker is arrested after the previous chief executive markus braun, who was later released on bail. prosecutors have said they are investigating numerous extra suspects just who can't be named for tactical factors. the whereabouts of wirecards former second-in-command jan marsalek are not known.

The ft earlier stated that mr bellenhaus, which ran wirecards cardsystems middle east, mainly from their apartment in globes tallest building, had remaining dubai and was staying at a five-star munich resort.

Wirecard for years informed its longstanding auditor ey that cardsystems operated a lucrative company outsourcing repayments processing to outside partners.

Mr bellenhaus in addition to groups vanished chief operating officer mr marsalek briefed kpmg in 2010 concerning the arrangements with third parties during an unique review because of the accounting company, relating to papers seen by the financial instances.

It was exposed as a sham final month precipitating wirecard filing for insolvency. wirecard admitted that 1.9bn of money on its stability sheet, including 1.1bn considered in 2 records in name of cardsystems, probably did not occur and therefore it had previously misrepresented the third-party business.

Mr bellenhaus had travelled to germany throughout the week-end and remained at five-star andaz munich schwabinger tor on sunday. he failed to get back a note remaining for him in the hotel. the financial instances could not straight away contact legal counsel for mr bellenhaus.

On monday morning, mr bellenhaus ended up being interrogated by munich prosecutors for many hours after which placed into police custody, the law enforcement authorities stated in a declaration.

Munich prosecutors tend to be leading an unlawful examination into wirecard, that will be based in the suburbs for the city. mr braun, who had been arrested and circulated on 5m bail, has rejected wrongdoing.he's got formerly declined demands to comment on their role at wirecard and another of this partner companies al alam possibilities in dubai main to your alleged fraudulence.

In october this past year, the ft published documents given by whistleblowers which suggested the company between wirecard and al alam had been devised. the ft also stated that mr bellenhaus were mixed up in running of al alam. during the time, wirecard denied any wrongdoing by its staff.

The collapse of wirecard, an associate for the prestigious dax 30 index with a valuation of more than 24bn 2 yrs ago and commonly seen as germanys many promising modern technology business, has actually encouraged an emergency for organizations supervising the group.

Cardsystems had been the greatest individual product within the wirecard team, purportedly adding 25 % of its globally income and about 40 per cent of profits in recent years, in accordance with papers seen by the ft, but its financial statements weren't made by an area audit company. as an alternative these were supervised included in the total team review by ey in germany.

Wirtschaftswoche, a german business weekly, has reported that at one phase the tiny and generally quiet al alam office in dubai had been filled with unknown staff, coinciding with a visit by ey auditors from germany.

Mr bellenhaus continues to be detailed as a manager of wirecard card solutions uk ltd, responsible for giving support to the prepaid card businesses of several united kingdom fintech organizations, a task he has held since 2012. the financial conduct authority recently froze wirecards united kingdom functions for three days, temporarily preventing clients of businesses such as for instance curve, pockit and payoneer from opening their money.

Cardsystems and al alam were both placed into liquidation in-may. during the time, wirecard said the al alam liquidation was a direct result the damage to its reputation brought on by its integrity being openly known as into concern, which the steps will have no effect on its business. the liquidation of cardsystems was meant to lessen the complexity within the team and increase its performance, wirecard stated during the time.