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The money is probably gone.The former chief executive of Wirecard was arrested Wednesday on new charges after prosecutors in Munich said they had uncovered evidence that the insolvent payments company had used false accounting to defraud creditors of $3.7 billion.The accusations significantly increase the scale of the financial wreckage left by Wirecard, and will add to the pressure on German regulators and outside auditors who failed to uncover irregularities despite warning signs going back Markus Braun, the former chief executive, and two other former Wirecard executives were arrested early Wednesday after prosecutors “significantly widened” their investigation of the company,Mr. He and two others, a former chief financial officer and a former head of accounting who were identified only by their initials, remained in custody after being brought before a judge on Wednesday, Ms. Leiding said.Authorities are also searching for Jan Marsalek, the former chief operating officer of Wirecard. Analysts say the deal was structured in such a way that there was no financial risk to SoftBank.At the time, there had already been concerns about Wirecard's accounting practices. The insolvent payments company used fake sales to dupe banks into lending it $3.7 billion, prosecutors said. Data is a real-time snapshot *Data is delayed at least 15 minutes. SoftBank's notorious multi-billion investment in office rental firm WeWork — which saw its private valuation slashed from $47 billion to just $2.9 billion in a year — has clouded the company's image. We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services. Because if you look at the quotes historically from the Softbank CEO, he needs to change because his vision has been somewhat clouded through a plethora of mistakes in recent time. On Wednesday, they were trading at €1.80.People questioned in the case have described a conspiracy that operated according to “a strict hierarchy, marked by esprit de corps and oaths of loyalty to the chief executive as leader,” Ms. Leiding said. The Financial Times published another article on Wireceard today referring to AlliedWallet Inc, a former client of the German fintech company that allegedly supported fraud schemes in the U.S.According to the U.S. Federal Trade Commission‘s Complaint, AlliedWallet knowingly processed payments for fraudulent merchants, and … Global Business and Financial News, Stock Quotes, and Market Data and Analysis.CEO of Softbank Group Masayoshi Son attending a news conference in Tokyo on February 8, 2017.Markus Braun, chief executive officer of Wirecard AG, arrives for the company's annual news conference in the Aschheim district of Munich, Germany, on Tuesday, April 25, 2019.Michaela Handrek-Rehle | Bloomberg via Getty ImagesWe need better incentives for whistleblowers in Germany, attorney says The German newspaper The new charges, including organized fraud and market manipulation, are based on evidence that Wirecard falsely inflated its sales and profits to secure loans worth €3.2 billion, or $3.7 billion, from banks in Germany, Japan and other countries, Ms. Leiding said.“Because of Wirecard’s insolvency,” she said, the money has “very likely been lost.” She did not identify the banks.Shareholders of Wirecard, which was listed on Germany’s blue chip DAX index, have already lost most of their money.

The business was growing and the firm had recently replaced Commerzbank in Germany's blue-chip DAX index.The transaction was managed by SoftBank Investment Advisors, the SoftBank subsidiary in charge of its huge $100 billion Vision Fund, and Credit Suisse was hired to act as advisor.Credit Suisse was not immediately available for comment when contacted by CNBC.The deal was given shareholder approval in June, while Wirecard secured an investment-grade credit rating from Moody's in August. The insolvent payments company used fake sales to dupe banks into lending it $3.7 billion, prosecutors said.