General Electric shares tank following accusation of 'bigger fraud than Enron'
Source: The Guardian
GE’s share price tanked after Madoff whistleblower claimed company is engaging in accounting fraud worth $38bn.
The whistleblower who called out Bernard Madoff’s Ponzi scheme has accused General Electric of wide-scale fraud in a move that has sent the conglomerate’s share price into a tailspin.
In a report titled General Electric, a Bigger Fraud Than Enron, investigator Harry Markopolos claims GE is engaging in accounting fraud worth $38bn. He said GE is heading for bankruptcy and is hiding $29bn in long-term care losses.
“GE’s $38bn in accounting fraud amounts to over 40% of GE’s market capitalization, making it far more serious than either the Enron or WorldCom accounting frauds,” he writes, referencing two of the largest corporate accounting scandals in history.
GE’s share price sank close to 15% after the report was released.
Read more: https://www.theguardian.com/business/2019/aug/15/general-electric-stock-harry-markopolos-fraud-claims
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92 billion in obligations....and then this...
