Greek Folli founders, executives charged with fraud, money laundering -source

Folli Follie SA

07/12/2018 21:25

ATHENS, Dec 7 (Reuters) - A Greek prosecutor has laid felony
charges against jewelry maker Folli Follie's founders and seven
other executives for fraud and money laundering, a judicial
source told Reuters on Friday.
    Folli, an upmarket Greek brand, has been under scrutiny
since a hedge fund raised concerns over its financial statements
for last year.
    Quintessential Capital Management said in a report in May
that the company overstated the number of its outlets and
questioned its accounting practices in Asia where it had
expanded rapidly.
    The report sent Folli shares into a tailspin and prompted a
legal investigation, a fine from the Greek securities watchdog
and the resignation of the company's founders.
    In October, a Greek court ruled that the bank accounts of
the Koutsolioutsos family, Folli Follie's founders, and other
incumbent and former board members and executives should be
frozen.
    The charges were laid against Dimitris Koutsolioutsos,
founder of Folli, his wife and his son George Koutsolioutsos,
who was the CEO of the company and a member of its board, the
judicial source said. 
    Charges were also laid against Folli's chief financial
officer, the chief of accounting, the head of its Asian
operations and three other board members, the source added,
saying that the prosecutor also ordered that all of the persons
charged not be allowed to leave the country.
    Two lawyers representing the founder and the CEO were not
immediately available for comment. A spokesperson for the
company was also not available for comment. 
    Folli has previously said the claims in the hedge fund
report were unfounded and misleading.


 (Reporting by Constantinos Georgizas, writing by George
Georgiopoulos; Editing by Kirsten Donovan)
 ((george.georgiopoulos@thomsonreuters.com; +30210 337 6437;
Reuters Messaging:
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