TELETRADER News
8/15, 8:11 PM (Source: TeleTrader)
more TeleTrader news

GE CEO calls Markopolos claims 'pure market manipulation'

GE's chief executive accused whistleblower Harry Markopolos of market manipulation on Thursday after the investigator claimed the company is concealing serious financial troubles.

"GE will always take any allegation of financial misconduct seriously. But this is market manipulation - pure and simple," CEO Lawrence Culp said in a statement. "Mr. Markopolos’s report contains false statements of fact and these claims could have been corrected if he had checked them with GE before publishing the report," he underlined.​ Culp also alleged Markopolos is "not interested in accurate financial analysis," but rather engaging in "generating downward volatility in GE stock so that he and his undisclosed hedge fund partner can personally profit."

In his report published online, the investigator said current financial reporting done by GE was akin to Enron's before its bankruptcy. Markopolos also said that a team he is leading found $38 billion in accounting fraud, which may be "merely the tip of the iceberg."

Shares of GE plunged 14.02% at 1:55 pm ET.

Breaking the News / JC