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    FCA launches UK High Court action against former Globo executives

    The Financial Conduct Authority has filed a high court proceeding against two former chief executive officers of Globo, a British mobile technology company that collapsed into power in 2015 following charges of accounting fraud. rice field.

    The UK Market Watchdog filed a proceeding last week against Globo’s founder and chief executive officer Costis Papadimitrakopoulos and chief financial officer Dimitris Gryparis. The incident occurs six years after the FCA began investigating the company.

    Globo was listed on London’s Aim, a loosely regulated market for small public companies in the United Kingdom. Equity and debt sales exceeded £ 100m and at peak Group stocks were valued at over £ 300m.

    The business was founded in 1997 and claimed to sell software used by more than 300,000 companies to manage employee mobile phones, but collapsed after being asked about revenue and profits.

    Globo told the market that month Papadimitrakopoulos resigned with Gryparis in October 2015 after notifying the board of directors of “specific issues with data tampering and misrepresentation of the company’s financial position.”

    The company also reported to law enforcement authorities in the United Kingdom, Greece and Cyprus, revealing that the FCA has begun an investigation.

    The FCA declined to comment.

    Globo collapsed after New York hedge fund Quintessential Capital Management released a report that it “has significantly exaggerated earnings and profits by creating fictitious invoices from shell companies.” [posing as] Legitimate client “.

    Financial Times too found The companies that Globo claimed to be a key customer on its website included a laptop repair shop in Mumbai that I had never heard of.

    When asked to comment by the FT at the time, Papadimitrakopoulos denied account fraud and issues. NS the next day He sold more than half of Globo’s 19% stake.

    It was not possible to ask Papadimitrakopoulos and Gryparis for comment.

    Gabriel Grego, the founder of the QCM, praised the FCA’s actions. “Once again, short activity combined with good research journalism proved its power for market profit,” he said.

    At the time of the collapse, Globo was audited by Grant Thornton and claimed £ 104m in cash reserves at various overseas subsidiaries. The bankruptcy trustee reported that the UK holding company failed with £ 180,000 in cash in its bank account. A year later, only £ 33,000 was recovered, primarily due to VAT refunds.

    In 2018, the Financial Reporting Council, which regulates auditors, completed Grant Thornton’s investigation into Globo audits without taking any action.

    FCA launches UK High Court action against former Globo executives Source link FCA launches UK High Court action against former Globo executives

    The post FCA launches UK High Court action against former Globo executives appeared first on California News Times.

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