GE, America's sweetheart has been accused of fraud allegations before. This time though, it's by the same person who did it on the Madoff Scheme (Harry Markopolos)
Markopolos’ main points of contention are:
1) GE’s insurance obligations are woefully under-reserved and it has been lying to the Kansas Insurance Department
2) GE shouldn’t have consolidated BHGE’s financial statements, which are a source of confusion
3) GE’s evolving presentation makes it very difficult to evaluate GE’s operating performance.
-------
In response to the whole ordeal, General Electric's CEO bought $2million in shares.
Markopolos’ main points of contention are:
1) GE’s insurance obligations are woefully under-reserved and it has been lying to the Kansas Insurance Department
2) GE shouldn’t have consolidated BHGE’s financial statements, which are a source of confusion
3) GE’s evolving presentation makes it very difficult to evaluate GE’s operating performance.
-------
In response to the whole ordeal, General Electric's CEO bought $2million in shares.