German Prosecutors Start Probe Over Grenke Fraud Allegations (2)

Prosecutors in Germany have started an investigation into accusations by short seller Fraser Perring that leasing firm Grenke AG committed fraud and money laundering.

The prosecutor’s office in the city Mannheim said on Thursday that it is investigating “in all directions” against “unknown persons” in relation to the claims.

Perring’s Viceroy Research Group, an early critic of collapsed payments firm Wirecard AG, has accused Grenke of using acquisitions to hide the fact that much of its cash doesn’t exist. Grenke rejected the allegations, saying that it holds 761 million euros ($902 million) in accounts at the German central bank ...