GRENKE: 2020 Viceroy allegations, BaFin special audit, franchise accounting and anti-money-laundering orders
GRENKE: 2020 Viceroy allegations, BaFin special audit, franchise accounting and anti-money-laundering orders: a public-record watch file compiled by Falling Shares Intelligence from filings and exchange disclosures, as of 2026-11-09. In September 2020 Viceroy Research alleged fraud, money laundering and market manipulation at GRENKE; the company called its central claim demonstrably false and the shares fell by as much as 29%.
From a short-seller report in September 2020 to BaFin's special audit, error findings on franchise accounting and a 2024 anti-money-laundering order: what the record shows and what the company says.
Falling Shares Intelligence, Edited by Wung Thomas, Editor-in-Chief. As of .
Summary
- In September 2020 Viceroy Research alleged fraud, money laundering and market manipulation at GRENKE; the company called its central claim demonstrably false and the shares fell by as much as 29%.
- KPMG's special review and a BaFin-ordered audit found no evidence that the leasing business did not exist, but BaFin's audit and later enforcement found errors in franchise-company accounting and other deficiencies.
- BaFin closed its bank-related measures in February 2022 with higher capital requirements, and in September 2024 ordered GRENKE Bank to remedy money-laundering-prevention deficiencies within 12 months.
- No outcome of the Mannheim prosecutors' investigation was found.
Key figures
| Share fall, 15 Sep 2020 | up to 29% (Day Viceroy published its report) |
|---|---|
| Equity reduction, 1 Jan 2019 | EUR 85.1m (After retroactive consolidation of franchise companies, per BaFin's findings as reported by the company) |
| SREP capital surcharge | 1.5 pp (group), 3 pp (bank) (Set February 2022; to be lifted when BaFin is satisfied) |
The allegations and the first probes
Viceroy Research publishes its report
Viceroy Research published a 64-page report alleging market manipulation, money laundering and fraud at GRENKE, including that much of its reported cash did not exist. GRENKE called the cash claim demonstrably false, said EUR 849m was held at the Bundesbank on 30 June and EUR 761m on the day, and reserved the right to take legal action. (15 Sep 2020)
BaFin examines possible market abuse in both directions
BaFin said it was examining whether GRENKE had manipulated the market through false financial information, whether third parties had manipulated the shares through a short attack, and whether there was insider trading before the report appeared. (Sep 2020)
Mannheim prosecutors open an investigation
The Mannheim public prosecutor's office said it was investigating in all directions against unknown persons over the fraud and money-laundering allegations. (17 Sep 2020)
Audits and regulatory findings
BaFin-ordered audit: franchise accounting and related persons
The auditor appointed by BaFin found weaknesses in money-laundering prevention, criticised the handling of franchise companies set up with outside investors and later bought by GRENKE (calling for full retroactive consolidation), and said related persons of the founder had not been properly disclosed. The chief executive acknowledged the findings, and the founder's deputy chair mandate was suspended. (1 Mar 2021)
BaFin declares accounting errors in the 2019 statements
GRENKE announced a BaFin declaratory decision on error findings for its 2019 accounts: twelve franchise subsidiaries were not consolidated and eight were consolidated late, overstating goodwill by EUR 54.3m; lease receivables were overstated by EUR 23.8m under IFRS 9; and goodwill for Poland and Portugal was overstated by EUR 6.2m in total. GRENKE said the findings held no surprises because it had already addressed them in its 2020 accounts. (27 Jul 2021)
BaFin closes bank measures with higher capital requirements
BaFin closed its bank-related measures from the special audit of autumn 2020 to spring 2021. The capital requirement for GRENKE AG rose from 9% to 10.5% and for GRENKE Bank from 8.5% to 11.5%, to be lifted once BaFin is satisfied in follow-up audits. GRENKE said it had launched an organisational development project. (16 Feb 2022)
BaFin orders GRENKE Bank to fix money-laundering deficiencies
BaFin ordered GRENKE Bank to ensure proper business organisation and to remedy deficiencies in the prevention of money laundering within 12 months. Audits found the bank partly failed to meet requirements under the Banking Act and the money-laundering act, with lending, internal audit and risk management named. The shares fell 11%. (6 Sep 2024)
Outcomes favourable to the company
KPMG special review finds no evidence the business does not exist
KPMG found no evidence that GRENKE's leasing business does not exist and no evidence of systematic money laundering, and could not find a breach of a BaFin order in the individual case cited. The BaFin-appointed auditor later also found no doubt over contracts with about EUR 5.6bn of receivables. (16 Dec 2020)
2024 annual report: no existence-threatening risks
GRENKE's 2024 annual report states that internal audit made no significant or serious findings in the 2024 reporting year and that there were no risks as of 31 December 2024 that could threaten the existence of the group. (2025)
Standard
This file compiles regulator and court documents, exchange filings, company statements and published reporting about GRENKE AG. Allegations are attributed to those who made them. An investigation is not a charge, a charge is not a finding, and nothing here is a finding of wrongdoing unless a competent authority has made one. GRENKE rejected the short seller's central allegations, and KPMG and the BaFin-appointed auditor found no evidence that the leasing business did not exist; BaFin did, however, identify accounting errors and organisational deficiencies, which are set out here. Individuals are not named unless an official document names them and they are central; otherwise roles are used. This is news coverage for information only, not investment advice.
Right of reply
GRENKE AG, and anyone named in a record cited here, can send corrections or comments to info@fallingshares.com (or directly to the Editor-in-Chief, Wung Thomas, at wungthomas@fallingshares.com). Material responses will be published alongside the relevant entry.