Spanish Wi-Fi provider Gowex has been forced to file for bankruptcy after the telco's founder and chief was found to be falsifying its accounts for the last four years.
CEO Jenaro Garcia Martin resigned after admitting the company's account reporting had been "unfaithful". Gowex had been viewed as one of the few success stories, bucking the trend of the country's ongoing economic gloom.
Gowex's share value tanked towards the end of last week after controversial US investment firm Gotham City Research alleged that 90% of the Wi-Fi firm's revenues did not exist.
"We have evidence Gowex's largest customer was really itself," the report from the research firm read.
The free Wi-Fi provider claimed the report was not only incorrect, but defamatory.
However, in light of Martin's admissions, the board realised it had no choice but to file for bankruptcy.
"Confronted by the expectation that the company would not be able to cope with its maturing current debt payments, [the board] agreed to file a voluntary request for bankruptcy," a statement read.
Martin took to Twitter to send a series of tweets apologising, admitting his guilt and saying that he was ready to accept the consequences of his actions.
I made the deposition and confession. I want to collaborate with the justice. I face the consecuencies.— Jenaro Garcia (@jero_net) July 6, 2014
Gowex, which is listed on Madrid's MAB stock exchange as well as New York OTC and NYSE Euronext Paris markets, presents earnings every six months.
Based on its latest report, revenue reached €183m (£145m, $249m) in 2013, according to Bloomberg data. It had €29.8m in debt as of December 31, 2013, according to the data.