Spanish wi-fi firm Gowex has been forced into liquidation following revelations that its founder and chief executive had been cooking the books for four years.
Jenaro Garcia Martin resigned his position after admitting to his board that the company accounts did not ‘show a full and fair view of the company’s situation’.
Martin’s confession came after shares in the firm were suspended on Thursday following complaints from US broker Gotham City Research, accusing Gowex of being a ‘charade’ with revenues ‘at most’ a tenth of what was publicly reported.
This saw Gowex’s share price collapse by 60 per cent before their suspension, despite protestations from Gowex that the report was ‘incorrect’ and ‘defamatory’.
Gowex was a global operation, providing free wi-fi services in cities including Madrid, London and Shanghai.