Report reveals bogus dealings of Folli Follie

ELTE, the state authority that monitors accounting companies, has revealed a network of bogus companies through which the Asian subsidiary of Folli Follie not only inflated its sales figures but also channeled funds through deposits or loans.

The Hellenic Accounting and Auditing Standards Oversight Board (ELTE) concluded its report on the jewelry company last week and is about to send it to the prosecutor. The report contains incriminating data on Ecovis, the firm that signed Folli Follie’s controversial 2017 financial report and will now have to face the ELTE disciplinary process.

ELTE’s conclusions, which Kathimerini has seen, show that both the main client and the main supplier of Folli Follie Group Sourcing Ltd, the group’s Asian subsidiary, are practically nonexistent, even though the financial report shows transactions of several hundred million dollars. Although this report reaches similar conclusions to that by Alvarez & Marsal, it reveals further data and looks back to 2016 too.