Gowex to File for Insolvency as CEO Resigns on Fake Accounts

Let’s Gowex SA, the Wi-Fi provider that was seen as a rare success story of Spanish entrepreneurship, will file for insolvency and said its chief executive officer resigned after admitting he presented fictitious financial accounts for at least the past four years.

The board accepted CEO and founder Jenaro Garcia’s resignation after he took full responsibility for fake accounts, Madrid-based Gowex said yesterday. The shares have dropped 60 percent since July 1, when short-seller Gotham City Research LLC said the company was worthless because it inflated revenue.