The offices of Spanish wireless networks provider Gowex have been searched by investigators on the orders of a judge, one day after it filed for bankruptcy and the former boss admitted he had misrepresented the firm’s financial accounts for at least the last four years.
Jenaro Garcia Martin is facing a slew of charges, including insider trading and unless he can raise 600,000 euros bail money within 15 days he will be jailed awaiting trial.
Gowex bankruptcy filing is complicated and needs a judge’s final go ahead as the financial and management situation at the company is still unclear.
Law firm Velez & Urbina said Gowex had decided to file for bankruptcy because it was in a state of “imminent insolvency” and faced a “financial standstill” after a high number of contracts were ended and new projects were cancelled.
Read how the fraud was revealed