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

Reuters  |  ATHENS 

(Reuters) - A Greek has laid felony charges against Follie's founders and seven other executives for fraud and money laundering, a judicial source told on Friday.

Folli, an upmarket Greek brand, has been under scrutiny since a hedge fund raised concerns over its financial statements for last year.

said in a report in May that the company overstated the number of its outlets and questioned its accounting practices in where it had expanded rapidly.

The report sent 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 ruled that the of the Koutsolioutsos family, Follie's founders, and other incumbent and former board members and executives should be frozen.

The charges were laid against Dimitris Koutsolioutsos, of Folli, his wife and his son George Koutsolioutsos, who was the of the company and a member of its board, the judicial source said.

Charges were also laid against Folli's chief financial officer, of accounting, the of its Asian operations and three other board members, the source added, saying that the also ordered that all of the persons charged not be allowed to leave the country.

Two lawyers representing the and the were not immediately available for comment. A 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)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, December 08 2018. 03:00 IST