Greek regulator imposes 4 mln euro fine on jewelry maker Folli over market manipulation

Greece’s securities regulator on Thursday imposed a 4 million euro ($4.64 million) fine on luxury jewelry maker Folli Follie and nine incumbent and former top executives, citing market manipulation over 2017 financial information.

Folli and the executives, including chairman Dimitrios Koutsoulioutsos and chief executive George Koutsolioutsos, manipulated the market because they did not provide data confirming 242.5 million euros cash reserves reported in the 2017 financial statements, the Hellenic Capital Market Commission said in a statement.

“In those financial statements, the individuals provided information which gave false or misleading indications about the company’s share price,” the statement said.
Folli declined to comment on the fine.

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Folli’s finances are being investigated by Greek authorities after equity fund Quintessential Capital Management (QCM) issued a report saying the company had overstated the number of retail outlets it operates worldwide and raised concerns over its reported finances.

Folli has said the claims in the report were unfounded and misleading.

Folli’s shares plunged in May after the report and the regulator suspended their trading on May 25 after the firm failed to provide requested financial data.

A Greek prosecutor has ordered a preliminary investigation into the company.

Last month, Folli obtained a temporary court injunction to protect its assets.