Greek jewelry maker Folli fined 4 million euros for market manipulation by regulator
Greece’s securities regulator recently announced a hefty 4 million euro fine imposed on luxury jewelry maker Folli Follie and nine current and former top executives. The fine was put in place due to alleged market manipulation surrounding the company’s financial information in 2017. Among those implicated were chairman Dimitrios Koutsoulioutsos and chief executive George Koutsolioutsos.
The Greek Capital Market Commission stated that Folli Follie and the individuals involved failed to provide evidence to support the reported 242.5 million euros in cash reserves as outlined in the 2017 financial statements. This lack of transparency led to misleading information about the company’s stock price, which ultimately led to market manipulation.
In response to the fine, Folli Follie chose not to comment on the matter. The company’s financial activities have come under scrutiny by Greek authorities following a report from equity fund Quintessential Capital Management (QCM) questioning the accuracy of the company’s reported number of retail outlets and the validity of its financial statements.
Following the release of the report, Folli Follie’s stock experienced a notable drop in value in May, prompting trading to be suspended on May 25 after the company failed to provide requested financial data. This chain of events prompted a preliminary investigation to be initiated by a Greek prosecutor looking into the company’s financial practices.
Despite the allegations and market turbulence, Folli Follie managed to secure a temporary court injunction to safeguard its assets. The ongoing investigations and legal proceedings shed light on potential irregularities within the company’s financial reporting and stock performance.
As the situation unfolds, it remains to be seen how Folli Follie and the implicated executives will address the allegations of market manipulation and provide clarity on their financial practices. The hefty fine and legal actions taken against the company underscore the importance of transparency and accuracy in financial reporting within the luxury industry.