Supreme Court orders consultancy EY to compensate four investors defrauded by Gowex

The Supreme Court ordered the consulting firm Ernst & Young Servicios Corporativos SL (EY) to compensate four investors affected by the Gowex fraud with a combined amount of almost 119,000 euros, finding that there was a “lack of control of the information sent by the company” by the consultant.

The Supreme Court’s ruling opens the door for hundreds of those affected by the fraud of a Wi-Fi network installation company to claim compensation, the Association of Financial Users (Asufin) said. This organization is suing 130 victims who are seeking 3.3 million euros.

The Gowex scandal exploded in 2014. The company run by Jenaro García was dedicated to creating and managing free Wi-Fi networks. In 2010, it started trading on the former Mercado Alternativo Bursátil (MBA), where its securities rose by 470% in just four years, allowing the company to reach a market value (capitalization) of 1,400 million euros, with a constant increase in new public of the contract.

false income

However, on July 1, 2014, financial firm Gotham revealed that 90% of the company’s reported revenue was false, forcing Gowex into bankruptcy. The consulting company EY was his registered advisor for the company’s entry into the market, recapitalization and other information that the company provided while it was on the stock exchange.

“The Supreme Court did justice and recognized the fraud of defrauded investors. Rulings like this give legal and economic security to investments in the Spanish markets, Asufin president Patricia Suárez said yesterday.