August 18, 2019

Anna Murray 

The General Electric's stock underwent the most terrible falling in US since April 2008 as the company was condemned for fraud, and stocks fell by 11%. ERShares CEO Shulman said that if the allegation from Harry Markopolos is real and there is fraud or manipulation through accounting, "This will be devastating, which may disappoint the company.

According to the SEC filing, financial statement, General Electric CEO Larry Culp bought 252,200 shares at $7.93 a share on Thursday. The deal is worth nearly $2 million.

Markopolos said in a 175-page report released on Thursday that approximately $40 billion in losses in its insurance business that General Electric has veiled. This is the largest accounting fraud case that Markopolos and his team have investigated so far. General Electric's chairman, Leslie Seidman, said that Markopolos's statement did not "reflect what I know about GE."

Markopolos questioned GE's majority stake in Baker Hughes, its oil services company, and accused the company individually traded with BHGE (BHGE) division of the loss, more than $9 billion.

Despite a sharp fall on Thursday, as new CEO Culp has been actively trading non-core assets for the purpose of supporting cash, the stock has risen 10% this year. These sales may also help reverse GE's situation, simplify the well-known complex companies, and focus more on the power and renewable energy, aerospace and healthcare businesses, which may keep stable growth for the future.

GE CEO Larry Culp issued a statement after the release of the Markopolos report. General Electric believes this is a market control, so that he and his secret hedge fund partners can make profit from here. But Schulman said I met with Markopolos face to face, who is a very reliable person, as a forensic accountant, this person is carefully and completely recording things.

Photo:Webshot.