GE: fraud accusations 'unfounded'

(CercleFinance.com) - The accusations of financial fraud launched on Thursday by the whistle-blower Harry Markopolos against GE are completely unfounded, the US industrial group says.


In a statement published yesterday evening, GE says it conducts its business with the highest degree of integrity, while defending the quality of its financial information.

We remain focused on the daily management of our activities, following the strategic plan that we have defined, the conglomerate says.

GE - which says that it has never met Harry Markopolos - argues that the financial analyst himself admits to having been paid by a hedge fund, pointing out that these investment funds generate significant profits through the short selling of shares.

For the record, the GE share fell by over 11% yesterday, following the publication of Harry Markopolos' report, according to which GE is the "new Enron" because of accounting manipulations that he says he has detected.

As GE shares fell, the group's Chairman and CEO chose to step up his share purchases, yesterday buying another 252,200 GE shares at a unit price of 7.9 dollars.

A seemingly good way to silence any suspicions of wrongdoing...


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