Harry Markopolos, who blew the whistle on Bernie Madoff’s Ponzi scheme, has now turned his attention toward General Electric Co. according to The Wall Street Journal.
Markopolos published a 170 page research report online Thursday in which he says that GE is not being transparent about the full scope of its issues which has resulted in inaccurate financial filings. These accounting issues amount to $38 billion, he says.
After the report was published, GE share prices fell over 10%. GE insists that Markopolos’s claims are groundless.
“GE operates at the highest level of integrity and stands behind its financial reporting,” GE said. “The claims made by Mr. Markopolos are meritless.”
“Contrary to Mr. Markopolos’ allegations, GE continues to maintain a strong liquidity position, committed credit lines, and several executable options to monetize assets,” GE insisted.
Prior to the report’s release, a GE spokeswoman said, “We will not be distracted by this type of meritless, misguided and self-serving speculation and neither should anyone in the investor community.”
GE was being investigated by the Securities and Exchange Commission and the Justice Department for accounting issues before Markopolos’s report was released. GE denies all allegations.
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