Fintech Startup Wise CEO under Investigation for Tax Evasion
Fintech startup CEO and co-founder Christo Karman is under investigation over allegations of tax evasion. Authorities allege the fintech unicorn CEO and co-founder owes a tax bill of more than £720,000. Christo Karman has been fined £365,651 by Her Majesty’s Department of the British Government’s Tax Collection Charge-Revenue and Customs.
While the UK Financial Conduct Authority declined to comment on the situation, a Wise spokesman said the CEO had filed his personal tax returns for the 2017/2018 tax year late, adding that the CEO has since he had paid his debts and late-filing penalties.
According to a statement issued by WISE on Monday, the Financial Conduct Authority (FCA) went ahead with an investigation and investigated whether the CEO failed to fulfill his obligations and did not live up to what was expected of him. WISE also added that its board of directors appointed outside lawyers to investigate the CEO’s tax irregularities and that the investigation was concluded in the fourth quarter of 2021 and its findings were forwarded to the Financial Conduct Authority.
“After reviewing the matter late last year, Kristo was asked by the board of directors to take corrective action, including appointing professional tax advisors to ensure his personal tax matters are handled appropriately,” Wise Chairman said. , David Wells, and emphasized that the company assumed tax noncompliance. For the investigation of the CEO and FCA very seriously.
He added: “The Board of Directors has also shared details of its findings, assessment and actions with the FCA and will cooperate fully with the FCA as necessary while continuing to support Christo in his role as CEO.”
CEO Christo Karman may have to resign from Wise as part of the FCA investigation. The probe could also send her out of the industry if regulators decide he shouldn’t be in space.
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