At the peak of the Gowex crisis, nobody doubts that Jenaro García's business was founded on thin air, not solid fundamentals. Shareholders were deceived and lost a lot of money in the past week after ten years of lies.
In statements before a judge, Jenaro García described Gowex's main goal: to create a pyramid business scheme that didn't have a solid financial backing. The businessman said that he falsified accounts and created fake invoices with various companies that he made and had frontmen run them. The criminal activity started in 2004 when the company started to have financial problems. But it's strange that while all this was going on inside the company, Gowex was soaring on the stock market. Strong earnings per share ratios attracted investor attention, and they suspected no foul play. Strong advertising secured the illusion. Nobody doubts that Gowex, whose market capitalization was greater than 1.9 billion euros. During its meteoric rise, Jenaro García raised funds over and over again, which gave him real money to speculate with. Now he has three million in a Luxembourg bank account.
The judge's job will not be easy. And the MAB has tough work ahead of it, too, because its regulatory system has been seriously undermined. While the MAB is obviously a useful alternative market, it?s necessary to clean up this market so we can give transparent financing to mid-size companies.
