Spain's Gowex files for bankruptcy, ex-CEO could face 10 years in jail

MADRID (Reuters) - (The July 14 story has been corrected to show Garcia Martin did not have his passport seized and was not banned from leaving Spain) Spanish wireless networks provider Gowex filed for bankruptcy on Monday, a week after an accounting fraud at the firm was revealed, while the High Court said its founder could face a jail sentence of more than 10 years. Law firm Velez & Urbina said Gowex had decided to file for bankruptcy because it was in a state of "imminent insolvency" and faced a "financial standstill" after a high number of contracts were ended and new projects were canceled. Former Chief Executive and Chairman Jenaro Garcia Martin said on July 6 that he had misrepresented the financial accounts for at least the last four years. Following his testimony before the High Court on Monday, Garcia Martin was given 15 days to pay a 600,000-euro ($818,400) bail or face jail.



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