A prosecutor in Athens referred to indications of fraud in the balance sheets of 18 Folli Follie subsidiaries dating back to 2007, in requesting the freezing of bank accounts and safe deposit boxes belonging to the embattled company’s principal owners, the Koutsolioutsos family, and board members.
According to naftemporiki, economic crimes prosecutor Ioannis Dragatsis requested and was granted the temporary measures by a misdemeanor council of justices. In requesting the measures, he cited indications of “booked books”, such as inflated profits, cash reserves and turnover.
The judicial decision refers to information from a preliminary report by Alvarez & Marsal, as well as sworn testimony by a representative of Greece’s capital markets commission.
Press reports in Athens on Wednesday cited a process called “merry-go round” transactions to inflate turnover and profits.