Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Spanish telco admits falsifying accounts post-Gotham City report

Gotham City Research, the short-seller that led a bear raid on Quindell, has forced Spanish WiFi provider Gowex to declare bankruptcy.

Gowex admitted its chief executive and founder had falsified the company’s accounts for at least the past four years, the FT reported.

In a statement, the board of Gowex said it had accepted the resignation of Jenaro García Martín, who has taken full responsibility for fake accounts.

Gowex said it had also hired PriceWaterhouseCoopers to carry out a forensic audit of its accounts in response to Gotham’s note.

Short sellers, such as Valiant Capital, have borrowed 2.8 per cent of Gowex’s share capital, and are set to profit from the company’s collapse.

The move follows the short-seller's claim that over 90% of Gowex's reported revenues do not exist.

In a note, Gotham predicted Gowex’s shares will be suspended and issued a target price of €0.00.

Gotham rose to prominence in April when it issued a damning dossier on Quindell, which led to the insurer’s share price plunging by as much as 52% on the day.


Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Navigating geopolitical risk with ETFs

Navigating geopolitical risk with ETFs

ETFGI’s Deborah Fuhr on how investors can use exchange-traded funds to position their portfolio.

Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Your Business: Cover Star Club

Profile: Barclays' former advisory boss on his move into property

Profile: Barclays' former advisory boss on his move into property

On paper, Rick Denton might have been expected to finish his career in banking

Wealth Manager on Twitter