Wirecard shares tumbled 10 percent last Friday after Singapore police reportedly raided the firm’s offices.

Shares of the German payments firm had traded higher earlier in the day after it announced it was taking legal action against the Financial Times for “unethical reporting” into its accounting practices.

The FT has published three articles alleging fraud and misconduct in Wirecard’s accounting practices. In a statement released Friday, Wirecard said it was taking legal actions against the news publication for its “unethical reporting.”

“In the article published yesterday (Thursday), Wirecard employees are slanderously prejudged with unproven and false allegations. We will use all available legal means to protect the company and in particular our employees and their personal rights,” the statement said.

One of the reports on Thursday described a pattern of “book-padding” at the firm’s Singapore office with reports on Friday morning saying that its offices in the island city-state had been raided by the authorities.

“Police confirm that we have raided the premises of the Wirecard entities in Singapore,” a spokesperson for the Singapore Police Force told CNBC Friday.

Meanwhile, a prosecutor in Munich launched a probe on potential market manipulation into Wirecard, Reuters also reported on Friday.

Since 2012 the company has raised €500m from shareholders, and spent it on a collection of obscure payments companies. Missing profit targets could have called into question the basis of Wirecard’s Asian expansion over the past decade. R&T’s preliminary review of the documentary evidence and whistleblower testimony identified potential for accounting irregularities in numbers reported to Germany for businesses in the Philippines, New Zealand, Hong Kong, Indonesia, Malaysia and India. It also indicated another potentially significant issue. Singapore and Hong Kong, like Germany, have put in place strict reporting requirements to combat money laundering. Suspicious transactions, such as those identified by Project Tiger, should be brought to the attention of the authorities in a reasonable timeframe.

It is not the first time the group’s accounting practices have been called into question. Accusations of suspect accounting were levelled in 2008, 2015 and 2016. Each time Wirecard has alleged market manipulation, sparking investigations by the German market regulator, BaFin. This time questions about its Asian operations began internally, prompted by a whistleblower left stunned by Mr Kurniawan’s January meeting last year. Notifying Wirecard’s senior legal counsel in the region on March 26, the whistleblower identified two senior finance executives, James Wardhana and Irene Chai, as accomplices in the book-cooking operation. A separate whistleblower also raised concerns in February, and on April 3 that person supplied the compliance team with a suspect contract they had received via Telegram, the encrypted messaging app.

About Wirecard: The Munich bases company Wirecard is a driver of innovation in the digitization of payments.

With 16 years of experience on the market, Wirecard AG offers more than 25,000 customers state-of-the-art technology, transparent real time reporting services and support in developing their international payment strategies: offline, online or mobile. The Wirecard Group has been supporting companies in accepting electronic payments from all sales channels. A global multi-channel platform bundles international payment acceptances and methods, flanked by fraud prevention solutions.

When it comes to issuing their own payment instruments in the form of cards or mobile payment solutions, Wirecard provides companies with an end-to-end infrastructure, including the requisite issuing licences for card and account products.

With 16 years of experience on the market, Wirecard AG offers more than 25,000 customers state-of-the-art technology, transparent real time reporting services and support in developing their international payment strategies: offline, online or mobile. The Wirecard Group has been supporting companies in accepting electronic payments from all sales channels. A global multi-channel platform bundles international payment acceptances and methods, flanked by fraud prevention solutions.

When it comes to issuing their own payment instruments in the form of cards or mobile payment solutions, Wirecard provides companies with an end-to-end infrastructure, including the requisite issuing licences for card and account products.

Sources:  CNBC and Financial Times

To read the latest article of the FT click on this link.