Greenberg: A Reminder That Fraud Is Alive and Well

SAN DIEGO (TheStreet) -- It's rare that a company confesses that what it has been saying is made up, but that's exactly what has happened in recent days in the bizarre tale of Let's Gowex.

This hasn't been a big story in the U.S. because Gowex, which provides wireless hot spots, is a Spanish company that doesn't trade in the U.S.

But it's a good story because of the events that have transpired over the past week as a reminder that, yes, under fire some companies do lie.

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The story got its start last Tuesday when Gotham City Research, run Daniel Yu -- who is short Gowex -- issued a report that said, in effect, that Gowex is a fraud and that its stock is headed to zero.

The company's immediate response was that Gotham's report was "flatly false" and that Gowex "will not hesitate to take legal action that will assist law against those responsible for the publication and any others that may have been involved."

The next day Gowex issued a press release headlined, "Gowex ratifies the whole of its business figures."

The release said that Gowex "confirms" its 2013 revenue, that "these figures have been verified by a chartered account auditor" and that the company "intends to expand its level of job creation."

The following day, on Thursday, Gowex issued two press releases:

One said that Gowex would suspend trading while it "is working on the preparation of an action plan and a response report to the one published by Gotham

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