Greek tech company Globo Plc said that its Chief Executive Officer Costis Papadimitrakopoulos and Chief Financial Officer Dimitris Gryparis have resigned after they disclosed falsified financial data at the company.

The company's CEO and CFO had told the company's board about the data manipulation after the short seller Quintessential Capital Management alleged the company lied about its financial position.

In addition, the Globo Chief Operating Officer Gerasimos Bonanos was also suspended due to the further investigation following the allegation report. The company is now without any leadership.

Quintessential stated on its report, according to Bloomberg, that Globo Plc is massively overstating its revenue and profit by generating fictitious sales invoices from shell companies created and controlled by Globo to pose legitimate clients.

Other shell companies posed as suppliers to Globo and generated fictitious expenses, part of which are then capitalized, in order to justify the cash shortfall.

The result of QCM investigation suggested that Globo relied on its falsified financial statements to issue shares and to secure credit to cover its ongoing expenses and to finance the acquisition of legitimate businesses.

The investigation also suggested that at least 60% of Globo's turnover is fake and only a minor portion of its business is authentic.

Globo Plc had refuted all allegations made in the report in advance, but the CEO's denial failed and he admitted with the CFO that they not only had been falsifying data, but the company was a pure fraud.

After the QCM report, the Global's stock fell about 27% and was suspended at the request of the company at a price of 28.25 pence or valuing the company about GDP106 million.

It was more surprising that the Globo CEO was selling stock. According to Reuters, the CEO has sold more than 42 million shares in the company.

This means Papadimitrakopoulos' holding in the company has been reduced to about 7.42% or 27.73 million shares from 18.67% or about 69.78 million shares and pledged 10 million shares under a personal loan agreement with Lantau Holdings Ltd.

For the next steps, Globo said, as reported on Alliance News, that the committee has begun talks with appropriate advisers to ascertain the company's true financial position. The company has additionally asked the company's lawyers to notify the matter to the appropriate authorities and informed its principal bankers.

The company also said that all of the executive directors have agreed to make themselves available and fully co-operate with any investigations.

Globo also stated that Canaccord Genuity Ltd has resigned as its joint corporate broker with immediate effect.