The Foley-Koutsolotsos trial: They destroyed the diamonds in one night

Referring to his notes with financial statements, the 82-year-old businessman, founder of the long-suffering company, defended the legality of his business activities, saying that major audit firms (PricewaterhouseCoopers Alvarez & Marsal) who “researched” economics By Foley Foley They didn't do in-depth research but that's all they looked for “The name was Kotzlioutsos.”. In fact, as specifically stated by the defendant “There was a systematic culling of the name Kotsoliotso and Foley Foley. Maybe they had some instructions from somewhere, I don’t know. But what happened was unforgivable to me. They destroyed a jewel in one night. People from Shanghai would pick me up and say to me: ‘Mr. Dimitris, “We see the entire Foley Building.”

Dr. continued. Kotzlioutsos, saying that if it was the value of trading in Asia that earned him the indictment, then he himself as a businessman could not, he said, stand a single day in the market. “There are 3,000 employees and these people were in department stores, airports, train stations, etc. The expenses required are 150 million dollars. How can you pay when your turnover is 53 million?” The accused said and added: “There is a discrepancy of 12%. 12% of the difference is in companies that are not consolidated but owned by the company. This means that the expenses of the company amounted to 150 million euros. They were financed through sales, sales and profits. The company had no debt, and was generating profits to be able to grow “.
Later, Dr. pointed out: “There are two large loans. From 2001 to 2006 the company borrowed 720 million euros. These loans were covered by each company we bought with its shares. That is, we obtained the loans using shares.”He said and continued:There is also a second loan in the amount of 430 million, this loan from 2014 to 2017, and this loan was serviced normally. The company will not face any problem in servicing its loans if its assets are sound (…). The issue five years ago is that they attribute to me that I ate 450 million, which is another image they present. This picture emerged because the auditing companies that were assigned to prepare the interim report did nothing. The information they provided was from interviews and clues. “I doubt everything.”

according to Dr.. KotsoliotsuWhat should have been done was for PricewaterhouseCoopers to establish its headquarters in Congo and visit the facilities and branches of his company. “He had to settle permanently in Congo to see the warehouses and everything we have there. They checked them and all they looked at was the word Koutsoliutsos. We as a family panicked then, I resigned immediately to ease the situation… How can they say my family ate 430 million? These things “Unthinkable. They wrote about 13 cars that my family owned. The company had more than 100 cars. Everything I went through is unacceptable. They put the word Koutsoliutsos and put next to it all the fake news.”He asked the accused to refer again to the “disaster” to which he said he had been exposed. “In China, word got out that Foley was a victim of Covid. There are 10 companies that copied our models. We're talking about a disaster. Foley was the only company that succeeded and entered all these markets and destroyed them all in one night.”

Forgery

After his apology, the 82-year-old businessman referred to the forgery of the bank documents attributed to him in the indictment. The account he gave was that perhaps his companies' auditors were requesting that these documents be covered from any audits by Congolese tax authorities.

“I'll tell you what I went through in Asia. My whole life was going to workshops. I had no idea about finances. During the balance sheet period, they would bring me packages and say, 'Mr. Dimitris, sign it.' For me, it doesn't make sense.” The fraud is likely to be to cover up internal use. “If the company doesn't have the money, how do they pay? How did he buy goods? Is it possible that there was no money? No screening was done on them, they just focused on the name Kotsoliotsu. Where was the money? Here our expenses were 200 million annually… For me, it was money in all companies. There was money there for a reason, they called it Alpha Bank.” The accused said and continued: “PwC knew about it. Who is directing it? There was no embezzlement or change of property and the group suffered losses of $32 million,” Alvarez said. It did not go to the site to inspect the company either. The Asia subgroup was not audited. There were 232 branches “They never went to look at it. Everywhere you see Foley Foley. The company has always been profitable.”

president: What is your position on the charges? The first category is criminal organization.

Accused: The defendants in Greece have no connection to Asia. They were poorly judged and destroyed.

president: The next charge is that you are committing ethical fraud….

Accused: There was no reason to do the forgery, it was – as I told you – for internal use and not for internal use….

president: Were there or were there no forged documents?

Accused: I discovered this later.

president: To launder money?

Accused: The only investment I made was a house I fixed up in 2003, and that house I took out on a no-flow loan. I was receiving 11,000 euros a month, the same amount my wife and son were receiving as salaries from the company.

president: When did your collaboration with Mr. Biggets begin? Who nominated him for the Asia group?

Accused: I don't know but I know he was the only one available. We sent him to Hong Kong as CFO. I don't remember now how he made that decision.

president: He told us that in Asia we do not deal with finance, only the warehouses and branches that you supervised?

Accused: Yes, I left this to Bigitis and I trust Tonio.

The president then asked the accused questions about the other two members of his family, his wife Katie and his son George, who were “sharing” the dock with him.
president: What is your son's relationship with Asia?
Accused: They came three or four times a year.
president: How did you choose for your wife to give her increased responsibilities in the company?
Accused: He joined the Board of Directors out of honor. He did not sign any balance sheets, and does not have company accounts
president: What studies does he have?
Accused: He studied psychology in London.
president: Don't you think that in addition to the honor given to her as Vice Chairman of the Board of Directors, this position also carries responsibility? Didn't you consult anyone?
Accused: I had a problem, I didn't consult anyone.
president: You had tyrannical rule.
Accused: Yes… When he found out, he cursed me… He knew the job but did not perform it.
president: Have you discussed company matters with her?
Accused: I was only telling her the positives.
president: Did your son understand that Bigitis and Tonio were going to do something with the balance sheet?
Accused: He understood yes, he was screaming at me saying “what are you doing”.
president: Why didn't you listen to him? He was ringing the bell…
Accused: Yes he was knocking on the door..it's my fault I wanted to do it all myself….
president: How was the data collected by circulation signed?
Accused: I wasn't on any tour. They came to my office to sign them.
president: Who was obligated to sign it?
Accused: Three or four people
president: A bit superficial…
Accused: Cruel, but it became an empire.
president:For your son. He had financial knowledge. Tell him we have a problem here with the garnishment of the financial statements, as you told us. When did you tell him?
Accused: In 2015.
president: He also has financial knowledge….
Accused: That's why he made a scene for me. I tell him: “Unfortunately, George, they suggested something to me and I did it.” He replied: I did not expect you to do such a thing. He didn't talk to me for about a month.

Dr.'s testimony will continue. Koutsolotsos on April 3 with questions from the District Prosecutor.