The disgraced ex-boss of Spanish wifi provider Let's Gowex, who faces fraud charges after he admitted false accounting, has posted bail of 600,000 euros ($800,000), a court said Monday.
Judge Santiago Pedraz of Spain's High Court on July 14 gave the company's former chief executive Jenaro Garcia Martin 15 days to come up with the bail or face jail after questioning him for over two hours.
Garcia Martin's wife transferred the bail from a bank in Luxembourg on Friday, the court said in a statement.
The court prohibited Garcia Martin from leaving Spain without authorisation and ordered him to hand in his passport and report to authorities every two weeks.
Garcia Martin is suspected of several crime including insider trading, falsification of economic and financial information and false accounting. If convicted he could face a jail sentence of over 10 years.
He resigned as chief executive on July 5 after he admitted he had faked Gowex's records and made up clients during several years to attract investors to the firm, which offered wifi services in public spaces in over 90 cities around the world including Paris and New York.
During questioning on court last month Garcia Martin said he had a bank account in Luxembourg with around three million euros.
Gowex, which had been touted as one of Spain's entrepreneurial success stories, then made a preliminary court filing for bankruptcy protection.
The company started unravelling on July 1 when investment firm Gotham City Research issued a report that alleged that 90 percent of the company's revenue was non-existent, prompting its stock to plunge.
The scandal raised concerns over the quality of regulator oversight at Spain's equity markets and led to a flight by investors from Madrid's junior market, the Alternative Equity Market, where Gowex is listed.
It follows another accounting major scandal. Last year Spanish packaged seafood giant Pescanova sought bankruptcy protection after an audit revealed the company had secretly amassed huge debts.
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