WHISTLEBLOWER: GENERAL ELECTRIC "A BIGGER FRAUD THAN ENRON" - ESSENTIALLY INSOLVENT . . .

WHISTLEBLOWER: GENERAL ELECTRIC "A BIGGER FRAUD THAN ENRON" - ESSENTIALLY INSOLVENT . . .
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General Electric are plummeting today (Thursday), dropping as much as 13 percent during the day following the release of a new report from financial whistleblower Harry Markopolos claiming the company is “a bigger fraud than Enron.”

Markopolos, who was instrumental in bringing down Bernie Madoff, claims that his team has unearthed substantial evidence of accounting fraud after seven months of analyzing GE’s books. He said they’ve uncovered $38 billion in fraud at the conglomerate, and that is “merely the tip of the iceberg.”

GE has denied the claims made in the report, saying in a statement, “GE stands behind its financials. We operate to the highest level of integrity in our financial reporting and we have clearly laid out our financial obligations in great detail.”

GE also claims that Markopolos has ties to hedge funds that would benefit from a decline in the company’s stock.

Markopolos’ 175-page report, published at GEfraud.com, alleges that GE has had a long history of accounting fraud, dating back as early as 1995, when the company was headed by Jack Welch.

The report claims that GE is essentially insolvent, and that its industrial businesses have a working capital deficit of $20 billion.

Markopolos also contends that GE’s cash positions are worse than the company has reported. He also wrote that GE’s true debt to equity ratio is 17:1, not 3:1, “which will undermine its credit status.”

Markopolos told CNBC’s Squawk Box on Thursday that GE’s existence could be threatened by what he found.

“It’s going to make this company probably file for bankruptcy,” Markopolos said.“WorldCom and Enron lasted about four months. … We’ll see how GE does.”

 

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  • This commment is unpublished.
    Debbi Erbeck · 9 days ago
    Assigned reading had a chapter on white collar crime, in which I learned that GE had 108 felony convictions. Individuals are judged as a risk if they have a felony conviction, but corporations, not so much. Does anyone ever consider this when buying products?
  • This commment is unpublished.
    His self · 9 days ago
    If GE collapses it will take Boeing down with it. Most Boeings are powered by GE engines.
  • This commment is unpublished.
    Lynne Smith · 9 days ago
    Charles Ortel has been on GE for years. Now, he's all over the Clinton Foundation and it's permutations.

    Glad to see this is getting more traction.