July 18, 2014 / 4:39 PM / 4 years ago

Auditor of collapsed Spanish company Gowex freed on bail

MADRID (Reuters) - The auditor of collapsed wireless networks provider Gowex was freed on bail on Friday after appearing in Spain’s High Court as part of an investigation into an alleged accounting fraud at the company.

The judge said there were signs of illegal practice in the work carried out by Antonio Diaz Villanueva for Gowex and that he had not declared his earnings from Gowex to tax authorities.

Villanueva, from small firm M&A Auditores, said he had carried out the work legally, court documents showed. He said his earnings in the past year had been around 300,000 euros ($405,300).

Gowex, listed on Spain’s alternative stock exchange, filed for bankruptcy on Monday two weeks after former chief executive Jenaro Garcia Martin admitted he misrepresented its accounts for at least the past four years.

Garcia Martin has been charged with false accounting, distortion of economic and financial information and insider trading. Villanueva, responsible for signing off the firm’s accounts, was among nine people beside Garcia Martin to be charged in connection with the collapse.

The judge said in court documents released on Friday that there were considerable motives to believe Villanueva was responsible for falsifying accounting and insider trading.

On Thursday, the investigating judge had issued a search and detain warrant for Villanueva after he failed to attend a court hearing.

($1 = 0.7401 Euros)

Reporting by Sonya Dowsett; Editing by Mark Heinrich

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