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General Electric, a Bigger Fraud than Enron
Posted on 8/15/19 at 8:04 am
Posted on 8/15/19 at 8:04 am
quote:
Summary: GE’s $38 Billion in Accounting Fraud
www.gefraud.com
by Harry Markopolos, CFA®, CFE
Synopsis:
This is my accounting fraud team’s ninth insurance fraud case in the past nine years and it’s the biggest, bigger than Enron and WorldCom combined. In fact, GE’s $38 Billion in accounting fraud amounts to over 40% of GE’s market capitalization, making it far more serious than either the Enron or WorldCom accounting frauds. Enron’s CEO, Jeff Skilling resigned on August 14, 2001, Enron was downgraded to junk status on November 28th and filed for bankruptcy protection on December 2nd. On March 11, 2002 WorldCom received document requests from the SEC related to its accounting and loans to officers; on April 30th CEO Bernie Ebbers resigns regarding his $400 million in personal loans from the company, then on June 25th CFO Scott Sullivan is fired before WorldCom files Chapter 11 on July 21st. It’s been 17 years since WorldCom so we’re long overdue for something like GE. As you read our slide deck you’ll see that GE utilizes many of the same accounting tricks as Enron did, so much so that we’ve taken to calling this the “GEnron” case.
LINK
Same guy who outed Madoff...
This post was edited on 8/15/19 at 8:06 am
12
Posted on 8/15/19 at 9:12 am to OleWarSkuleAlum
I just read this. I work for GE, very concerned. Interestingly enough, GE Renewable Energy exists because they purchased that portion of Enron for pennies on the dollar.
Posted on 8/15/19 at 9:28 am to OleWarSkuleAlum
I can not believe I wasted time reading that garbage.
Heaping piles of innuendo and word salad with zero meat.
ETA: He better be able to back this up or he is going to have a very bad week, the SEC takes a very dim view of stock manipulation.
Heaping piles of innuendo and word salad with zero meat.
ETA: He better be able to back this up or he is going to have a very bad week, the SEC takes a very dim view of stock manipulation.
quote:
Markopolos is working with a hedge fund he didn’t identify and stands to benefit from bets that GE’s stock will decline, according to the Wall Street Journal
This post was edited on 8/15/19 at 9:34 am
Posted on 8/15/19 at 10:05 am to OleWarSkuleAlum
I didn't read any of that....but I did hear from a friend of a friend who is in IT that GE is literally 10 years behind schedule in completing a project for a very large LA based oil storage endeavor.
Posted on 8/15/19 at 11:23 am to OleWarSkuleAlum
How is a guy who is on a fraud team allowed to issue a public report like that?
GE has issues. I'm not sure they rise to fraud. Bad investments (like the Baker Hughes deal) could just mean incompetence, not fraud.
GE has issues. I'm not sure they rise to fraud. Bad investments (like the Baker Hughes deal) could just mean incompetence, not fraud.
Posted on 8/15/19 at 11:23 am to OleWarSkuleAlum
I imagine there is a lot of truth behind this, GE has been tanking for a while now. I imagine the board was/is doing whatever they can to keep the company, founded by Thomas Edison, afloat. The stock is down 74% since 2017.
Posted on 8/15/19 at 11:50 am to OleWarSkuleAlum
quote:Indeed.
Same guy who outed Madoff...
Harry Markopolos is also being paid by an undisclosed hedge fund.
Want to guess as to the likelihood of that fund shorting GE in advance of Markopolos's report?
Seems filthy.
Posted on 8/15/19 at 4:40 pm to OleWarSkuleAlum
quote:GE CEO Larry Culp bought 252,000 shares of GE today. Stanley Druckenmiller, who has shorted GE in the past, went long today.
Bigger Fraud than Enron
I'm not buying GE, but this Marcopolos coordinated story stinks to high heaven.
Posted on 8/15/19 at 6:01 pm to OleWarSkuleAlum
I left my job at GE Aviation last November. Life has been so much less stressful since. Every week was a new all hands regarding some new bs about the company’s finances
Posted on 8/16/19 at 9:20 am to OleWarSkuleAlum
If you watch the video (all 15 min of it), he is pretty on point with his reasoning and numbers.
Yahoo Video
He states that he self-funded this research using public documents for 7 mths before allowing a hedge fund to view in advance the research before going public. He also handed over that research to law enforcement.
He might end up being wrong but if I worked at GE or had ties to it, I would be very worried.
Yahoo Video
He states that he self-funded this research using public documents for 7 mths before allowing a hedge fund to view in advance the research before going public. He also handed over that research to law enforcement.
He might end up being wrong but if I worked at GE or had ties to it, I would be very worried.
Posted on 8/16/19 at 10:36 am to OleWarSkuleAlum
He has to disclose if he has a position or plans on taking a position. That's why you see talking heads on CNBC all the time say they are long or short or don't plan on taking a position within a certain time frame. If they don't do this they violate FINRA and SEC rules.
He disclosed that the firm he works form has a large short position. It really isn't that hard to understand.
He disclosed that the firm he works form has a large short position. It really isn't that hard to understand.
This post was edited on 8/16/19 at 10:37 am
Posted on 8/16/19 at 10:37 am to OleWarSkuleAlum
Haven’t studied in detail but a quick glance at the BHGE argument has an obvious flaw.
He mentions BHGE is primary beneficiary of VIE and consolidates.... then argues that GE inappropriately does the same and it is double counted. He states only one entity can consolidate.
He is correct only one entity can consolidate - but if such entity is a sub of another pub co - it will show as consolidated in both (pub co GE and sub co BHGE). His lack of understanding of this or purposeful misstatement doesn’t leave me optimistic about the rest of it.
Ofcourse that is at the high level - perhaps the details would clarify.
He mentions BHGE is primary beneficiary of VIE and consolidates.... then argues that GE inappropriately does the same and it is double counted. He states only one entity can consolidate.
He is correct only one entity can consolidate - but if such entity is a sub of another pub co - it will show as consolidated in both (pub co GE and sub co BHGE). His lack of understanding of this or purposeful misstatement doesn’t leave me optimistic about the rest of it.
Ofcourse that is at the high level - perhaps the details would clarify.
Posted on 8/18/19 at 12:14 am to OleWarSkuleAlum
Enron was badness and so was Bernie Ebbers Wcom!
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