Gowex Provides Free WiFi and a 90% False Report

Residents of San Francisco and New York are well aware of a free WiFi option offered in particular areas, with this service being run by a lesser known company named Gowex. Based out of Madrid, this provider has recently admitted in their reports to have doctored their accounts heavily over the last four years.

Previously Gowex had been praised as a major spanish success with top performances in Madrid’s Alternative Equity Market (a stock exchange for smaller companies). However, a few years ago Gotham City Research posted a report claiming that Gowex’s revenue was inflated by 90%.

These claims were denied at the time by Gowex:

“The information published today by Gotham City Research LLC has major factual inaccuracies and false statements which the Company considers defamatory.” European Equities

They then went on to claim that:

“The Company confirms that in 2013 it achieved revenues of 182.6 million euros, of which 25.4 million euros correspond to GOWEX Telecom and 157.2 correspond to GOWEX Wireless, equity of 94.4 million euros, net cash position of 54.8 million euros and having accrued 10.5 million euros
in income tax.”

On July the 6th Gowex’s president Jenaro Garcia acknowledged the allegations and resigned from his role. On Twitter, Garcia admitted:

“I made the deposition and confession. I want to collaborate with the justice. I face the consecuencies.” @jero_net

Since this announcement, the company has filed for bankruptcy which puts the free WiFi services of San Francisco and New York up in the air.

Image courtesy of Gowex on Google Plus