PRESS RELEASE – Athens, 10th September 2020
In a healthy and dynamic Capital Market, sometimes you win, sometimes you lose, but what is unforgivable is to lose your money due to fraud and not be fully compensated for it. In case of fraud, Regulatory and Supervision Authorities must immediately, assisted by Judicial Authorities, contribute to the rapid and full compensation of investors, as this is the only way for any Capital Market to gain prestige and respect and attract investors. Unfortunately, this has not happened in Athens Stock Exchange so far, in the case of FF.
However, the recent announcement of the pre-trial detention of the 2 major shareholders of FF, even if it was provocatively delayed for 28 months, now paves the way for the full compensation of the injured investors in shares and bonds of the company.
The 2 major shareholders and allegedly the main culprits of the huge fraud that took place, will no longer have the opportunity to roam the company’s offices as they frequently did, possibly organizing the cover-up of their actions that led to the scandal and blocking the investigations e.g. for the search of 479 million of received loans after 2015 that mysteriously have “disappeared” somewhere in faraway Asia.
And this has been always the main goal of a pre-trial detention, i.e. the ban of the possibility of interfering in the work of justice, something that the Greek justice system “diligently” avoided doing for 2 1/2 years, leaving the major shareholders to walk around and cover the traces of their (probably illegal) actions. In any case, the administration of the Hellenic Capital markets Commission also bears a huge responsibility, since from 2015 they were officially informed by a whistleblower about the irregularities but until February 2020 they left the major shareholders to participate in the management of the company!
We also expect the competent Prosecutor to further investigate the possible commitment of the crimes of obstructing justice, and concealment or destruction of critical evidence that were probably committed in the last 2 1/2 years, i.e. while the major shareholders in question were not arrested. During this time, tens of millions were spent on expensive consultants, lawyers, economists who were supposed to save FF, while the obvious goal was only to save the Koutsolioutsos family from its enormous responsibilities. We remind everyone that on 31/12/17 the cash balance of the firm was 176 million and now that has almost disappeared while the company, under its new management, is desperately looking for a loan of a few million to run . Where and how have tens of millions been spent, after May 2018?
We once again call on all shareholders and bondholders who have suffered from this unprecedented scandal, to participate en masse in the Hellenic Investors Association to claim their full compensation either from the major shareholders, the company or the Certified Auditors, or even by the Underwriting Banks in Greece and abroad, pointing out that as early as June 2019, our Union has filed compensation claims for all 130 of its members (see our 21st Press Release on 12/6/19) who had losses in FF.
We repeat that those who are interested in participating in the Class Action Lawsuit of the Union, should contact directly at 210.3633104, or send an email to [email protected] or to [email protected] with the indication ” Participation to Folli Class Actions”
PS The case has now acquired a significant international interest https://m.globallegalpost.com/big-stories/quinn-emanuel-and-omni-bridgeway-enter-folli-follie-accounting-fray-6221/ as already 2 Large companies have teamed up to file a lawsuit against Swiss Investment Bank UBS for its huge responsibilities as an Underwriter for the issuance of the 2017 bond, and they have already communicated with us towards a common strategy.
