Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration 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 Insight's Waddington reveals infrastructure plays post-Carillion

Insight's Waddington reveals infrastructure plays post-Carillion

Post-Carillion Steve Waddington is still finding attractive plays in infrastructure.

1 Comment Play Mark Stevenson: oil is the dumbest place to put your money

Mark Stevenson: oil is the dumbest place to put your money

Futurist Mark Stevenson says that investing in oil is not just a risk to the environment but also your investment.

Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter