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8/15, 3:09 PM (Source: TeleTrader)
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GE's stock plunge after accusations of accounting fraud

General Electric Co.'s share price tumbled on Friday after a forensic accounting and financial fraud investigator Harry Markopolos published his latest research in which he alleges that the company was "on the verge of insolvency " and that it was posting fraudulent financial statements. Markopolos became famous after he uncovered that Bernard Madoff's wealth management business was actually a Ponzi scheme.

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 a tip of the iceberg."

The company didn't respond to media inquiries concerning the report but said it wasn't contacted by Markopolos or his team. GE's stock lost 3.10% at 8:54 am ET after the news broke out.

Breaking the News / MA