GE whistleblower news for Thursday includes claims that the company committed fraud.
Harry Markopolos is the person behind the claims and he put out a 175-page report detailing his findings. According to this report, General Electric (NYSE:GE) has $38 billion in fraud and Markopolos believes that this is only the “tip of the iceberg.”
The GE whistleblower report points to two specific businesses of GE’s. The first is its insurance business. Markopolos claims that the company is hiding major losses from this unit that will become more apparent as those with policies grow older. The second target of the GE whistleblower report is Baker Hughes, which is the company’s oil and gas unit.
The reaction to the GE whistleblower report is negative all around. This includes GE arguing that the findings from Markopolos aren’t true. That still isn’t helping its stock, which is falling on Thursday following the news.
Harry Markopolos isn’t just some bookkeeper, either. The accountant was also responsible for uncovering the Bernie Madoff ponzi scheme well before it was officially discovered. He’s also calling this case with GE worse than Enron, which is a company that had to shut down after its fraud was found out, reports CNBC.
“We remain focused on running our business every day and … will not be distracted by this type of meritless, misguided and self-serving speculation,” GE told New York Post.
GE stock was down 11% as of noon Thursday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
