Grenke’s Regulator BaFin Starts Special Audit After Fraud Claims

Germany’s financial markets regulator BaFin has started a special audit of Grenke AG after the leasing firm was accused of accounting fraud, money laundering and a lack of internal controls by a shortseller.

The banking probe by BaFin, which is already looking at whether Grenke or other parties manipulated the price of the company’s securities, will look more deeply at allegations against the firm, taking scrutiny to a higher level.

Fraser Perring’s Viceroy Research Group this month sent Grenke’s shares on a roller-coaster with allegations that the company used acquisitions to hide the fact that much of its cash ...