Report leads to plunge in General Electric’s stock

Local News

Shares of General Electric (GE) are down more than 10 percent in trading Thursday, after Bernie Madoff, whistle-blower, and Erie native Harry Markopolos released a new report on the conglomerate.

In the report, Markopolos accuses GE of issuing fraudulent financial statements in an effort to hide the true extent of the company’s financial problems.

He and a team of accountants were probing the records of GE for an unidentified hedge fund when they discovered what Markopolos calls a “bigger fraud than Enron.”

The report points out issues with GE’s long-term care insurance unit, and its oil and gas business as being the source of GE’s problems.

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