General Electric has been targeted by Bernie Madoff whistleblower Harry Markopolos with allegations of a $38 billion accounting fraud, which sent the company’s stock plunging to a six-month low.
In a 175-page report released Thursday, Markopolos alleges the company’s reporting contains falsified revenue and earnings, hidden losses and debt, misleading disclosures, and an overuse of non-GAAP metrics to mask true results. He also disclosed that his firm, Forensic Decisions PR, had an agreement with an unnamed third party that had a position in GE “designed to generate profits should the price of GE securities decrease.”
