GE Is New Target of Madoff Whistleblower

Discussion in 'Current Affairs' started by Oddjob, Aug 16, 2019.

  1. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    This will be interesting to watch play out.

    GE could be under the gun post a report from Harry Markoplos (the gent who blew the whistle on Bernie Madoff) that claims accounting fraud and an insolvent GE.

    (Note: Harry did this in conjuction with / for an undisclosed hedge fund but given his history re Madoff and as he's giving his research to the US SEC, he appears to be on the up and up....time will tell)

    Interview with Harry below and a WSJ article on same below too.



    GE Is New Target of Madoff Whistleblower

    https://www.wsj.com/articles/ge-is-new-target-of-madoff-whistleblower-11565866617


    Harry Markopolos releases report on GE’s accounting, claiming its cash situation is far worse than disclosed and GE needs to boost insurance reserves. Company says claims are false, misleading.

    By
    Thomas Gryta and
    Mark Maremont
    Updated Aug. 15, 2019 6:24 pm ET

    An accounting expert who raised red flags about Bernie Madoff ’s Ponzi scheme has a new target: General Electric Co. GE -11.30%

    In a research report posted online Thursday, Harry Markopolos alleges the struggling conglomerate has masked the depths of its problems, resulting in inaccurate and fraudulent financial filings with regulators. The report, which numbers more than 170 pages, is a mixture of detailed financial analysis and sweeping claims.

    In an interview, Mr. Markopolos said his group found GE’s insurance unit will need to bolster its reserves by $18.5 billion in cash, and he faulted the way the company is accounting for its oil-and-gas business. All told, he said, the accounting problems amount to $38 billion, or 40% of the conglomerate’s market value.

    “This is market manipulation—pure and simple,” GE Chief Executive Officer Larry Culp said in a statement that was released midday Thursday. “Mr. Markopolos’s report contains false statements of fact, and these claims could have been corrected if he had checked them with GE before publishing the report.”

    GE stood by its financial reporting and said the Markopolos report was produced to help short sellers by creating volatility in GE shares. Mr. Culp accused Mr. Markopolos of being motivated by personal profit rather than accurate financial analysis.

    GE’s shares dropped 11% to $8.01, a seven-month low, in Thursday’s trading. That is the largest percentage decrease since April 2008. Mr. Culp bought $2 million of GE stock at $7.93 a share Thursday, after buying $3 million worth at $9.03 Monday. A spokeswoman said the purchases reflect his confidence in the company.

    Mr. Markopolos said he and his colleagues are working with an undisclosed hedge fund, which is betting GE’s share price will decline. Mr. Markopolos’s group gave the investor access to the research before publication and will receive a portion of any trading proceeds. He declined to identify the hedge fund. The group also is sharing its findings with securities regulators, hoping to collect a cash reward as part of a whistleblower program, Mr. Markopolos said.

    Click link for full article.
     
    leo25 and JOHNLGALT like this.
  2. JOHNLGALT

    JOHNLGALT Well-Known Member

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    Yes Oddie, young fella, I just watched this Video where the guy gives us all a hint at what is coming & goes into the way the big boys are playing us.
    WALL STREET PANIC!! BANK RUNS AND LARGEST FRAUD IN HISTORY!
    AMTV Published on 15 Aug 2019 SUBSCRIBED 655K
    In today's video, Christopher Greene of AMTV reports on Economic Collapse 2019.

     
  3. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    Chris Green needs to lay off the coffee...but sometimes says something interesting.
     

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