A Stock Market Star Implodes in Spain

A short seller exposes fraud at Wi-Fi provider Let’s Gowex
Jenaro García Photograph by Niall Carson/PA Wire/AP Images

It was 10:37 a.m. on July 1. Jenaro García was preparing for a meeting with Madrid’s mayor aimed at fostering Spain’s entrepreneurial spirit when a message popped up on his phone. A short seller in New York had just released a report saying that Let’s Gowex, the company García founded 15 years ago to offer Internet access via Wi-Fi hotspots, had overstated its revenue by almost tenfold in recent years. García denied the accusations and threatened legal action against the report’s author, Gotham City Research. He continued his usual routine, posting on Twitter, “Gooooood morning Madrid!!!! Perfect day for a jog.” Then he told his board that Gotham’s report was on target, according to a company filing.

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