Grenke Says Auditor Finds Flaws But Backs Leasing Business (1)

Grenke AG said an audit backed by Germany’s top financial regulator criticized the leasing firm for its accounting practices and lack of disclosures but didn’t find evidence of fraud or money laundering.

Short seller Fraser Perring last year accused Grenke of money laundering and fraud, claiming that the company was using acquisitions of franchises to hide a lack of cash. Perring’s report in September had pushed Grenke’s shares into a tailspin and prompted two special reviews mandated by the company and an additional audit by accounting firm Mazars that was commissioned by financial regulator Bafin.

Mazars’ interim report found flaws ...