Fraud investigator Harry Markopolos' accusations extended beyond GE's management to actuaries, auditors and analysts who he claims overlooked billions in liabilities.
Fraud finder Harry Markopolos took GE stock down more than 11% in one day with a dizzying array of charts and numbers, but also some choice words accusing analysts, ratings agencies and GE's management of Enron-era behaviors.10% on Friday after GE CEO Larry Culp invested $2 million on the dip and, mostly calling Markopolos' claims inaccurate or based on old news that was already baked into GE's stock price.
He extended his accusations to actuaries, auditors and analysts who he claims overlooked billions in liabilities in GE's long-term care insurance business. Here's a selection of his barbs: "Our final three questions are for KPMG, GE's auditors for the past 110 years dating back to 1909: 1) What did you know? 2) When did you know it? And 3) Where's your 'going concern' opinion?"
Markopolos' rhetoric leavened a report heavy on complex accounting issues. But it doesn't appear to be making him any allies in his quest to expose. Nick Heymann, co-group head of global industrial infrastructure at the William Blair financial services firm, accused him of simply"You got the stock on sale yesterday for absolutely no basis," Heymann told CNBC on Friday
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'Not the GE I know' — board member Leslie Seidman responds to Markopolos' fraud accusationsSeidman, a General Electric board director and chair of its audit committee, told CNBC on Thursday that Harry Markopolos' report is 'full of misleading, inaccurate and inflammatory statements.'
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Famed Madoff whistleblower Harry Markopolos could make millions from his claims General Electric is committing fraudHarry Markopolos, a whistleblower on the Madoff ponzi scheme, claims General Electric has committed more than $38 billion worth of accounting fraud.
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GE CEO calls Markopolos report 'market manipulation' and 'false'General Electric Co Chief Executive Larry Culp said on Thursday that a report al...
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GE CEO Larry Culp bought nearly $2 million worth of the company's stock after fraud accusationEarlier, Madoff whistleblower Harry Markopolos called the conglomerate 'a bigger fraud than Enron.'
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Analyst says GE stock recovering because Madoff whistleblower fraud allegations are baseless'You got the stock on sale yesterday for absolutely no basis. This is why all the insiders are buying,' says William Blair analyst Nick Heymann.
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Here's the full report calling GE 'a bigger fraud than Enron'These are the stocks posting the largest moves before the bell.
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