General Electric (NYSE:GE) won’t tolerate anything that affects its stock the way the recent saga did. The business guru put up a fight on Thursday night saying that it was not involved in any form of fraud. A company official has confirmed that their stock hasn’t ever experienced such a drop since April 2008.Thisd was a decline of about 11% on Thursday. This was after the American financial fraud investigator Harry Markopolos accused the company of orchestrating fraud.
Culp accused to be a part of the fraudulent activities
The CEO of GE Larry Culp purchased about 252,200 shares each for a rate of $7.9.In total, he spent $2 million in the business undertaking. The official’s move is said to have caused GE’s share price to balloon. This was by about 2% in the course of the after-hours trading.
Culp had earlier on made another purchase. That combined with the latest purchase makes his stock ownership in the company almost double. Reports confirm that he currently owns outstanding shares amounting to about 1% of all the company shares.
GE denies claims
In defense of the business guru, the Board Director Leslie Seidman has dismissed the investigators claims. He called them inflammatory and baseless in one of his latest interviews. According to the leader, none of the claims made by Markopolos reflected on the GE he knew.
Markopolos seems more determined and confident about his take on the company. On Thursday, the investigator told news reporters that the Company had been hiding about 40% losses in its insurance segment. He added that his team of investigators had never at any point come across such a huge accounting fraud.
Markopolos opined, “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.”
The energy giant Enron went down because of a scandal and the investigator wants GE to watch out.
In its statement, GE takes firm stand that Mr. Markopolos made claims that had no merit at all. The business giant is disappointed with Mr. Markopolos whom it claims it hasn’t ever met or spoken to.