Whistleblower Alleges GE Commits Almost $40 Billion In Accounting Fraud

General Electric (GE) shares fell Thursday following Bernard Madoff whistleblower, Harry Markopolos, targeting the company in a report alleging the corporation covered up a massive amount of losses in financial documents, according to the Washington Post.

A forensic accountant, Markopolos posted a 175-page report, which is being circulated on a website called GEFraud.com. The reporting alleges that GE is committing $38 billion in accounting fraud. He calls this a “bigger fraud than Enron,” and declares GE is using similar fraud tactics. After the release of the report, GE stock dropped 4.3% in premarket trading, according to Reuters. 

“[I]t’s the biggest, bigger than Enron and WorldCom combined,” the report goes on to say. “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.”

Markopolos and his team published the allegations after a year’s worth of research.

“My team has spent the past 7 months analyzing GE’s accounting and we believe the $38 Billion in fraud we’ve come across is merely the tip of the iceberg,” Markopolos stated in the 175-page report.

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