Ten People Charged for Money Laundering in Folli Follie Case

A financial prosecutor on Friday charged 10 people for fraud and money laundering in the Folli Follie Group case.

Among the 10 people investigated are founder Dimitris Koutsolioutsos, his wife Katerina and their son Giorgos, who is also CEO and board member of the Greek jewelry maker.

Financial prosecutor Ioannis Dragatsis is also investigating three other members of the board, the chief financial officer, the head accountant, the accountant who signed the company’s balance sheet and the Group’s head in Asia.

The 10 suspects are not allowed to leave the country. Also, the prosecutors have asked the Judicial Council to freeze the suspects’ bank accounts, deposit boxes and all financial assets.

The Greek retailer saw its shares plunge 30 percent in May after a hedge fund said it was shorting the stock because its Folli Follie chain had much fewer assets than those presented in its last annual report.

Particularly, Quintessential Capital Management told a press conference that the FF Group might be operating 289 outlets instead of the 630 claimed in its statements. The company refuted the claims, but later investigations found that, indeed, the company’s assets were less than its financial reports claimed.