Madoff whistleblower alleges General Electric is a "bigger fraud than Enron and WorldCom combined"

[Commissar SFLUFAN]

Markopolos's team just issued a 175 page report that claims GE was hiding the depths of its financial problems and would need to significantly raise its insurance reserves.

 

Quote

“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 says in the report.

 

[Commissar SFLUFAN]

I just received the report - I know what I'm gonna be doing this weekend! 

[Bloodporne]

17 minutes ago, SFLUFAN said:

I just received the report - I know what I'm gonna be doing this weekend! 

Erin Brockovich called, she wants her weekend back!!!!!

 

[Commissar SFLUFAN]

The KPMG partner in charge of the GE audit is probably having some very uncomfortable conversations with the firm's risk lawyers right about now.

[CitizenVectron]

So you're saying I shouldn't buy GE shares right now...

[SuperSpreader]

I wouldn't be surprised if this is true for most old giants

[b_m_b_m_b_m]

27 minutes ago, 2user1cup said:

I wouldn't be surprised if this is true for most old giants

GE's long term care unit is what is doing it in. 

 

Without getting into too many details, my company has some legacy GE LTC policies, and they nearly sank this company about a decade ago. The premiums that some people have for the amount of coverage they get is INSANE, especially if you're younger. I'm talking hundreds of thousands of dollars of coverage for less than tens of dollars in premiums per year.

 

I'm not shocked tbh

[Commissar SFLUFAN]

OLOLOLOL - KPMG has been GE's auditor for 109 years!

 

Yeah that TOTALLY gives me complete faith in their "independence"!

 

God, how I DESPISE the "Big 4"!

[Bloodporne]

15 minutes ago, SFLUFAN said:

OLOLOLOL - KPMG has been GE's auditor for 109 years!

 

Yeah that TOTALLY gives me complete faith in their "independence"!

 

God, how I DESPISE the "Big 4"!

I thought you liked Metallica!?

[Commissar SFLUFAN]

For anyone interested.

 

2019_08_15_GE_Whistleblower_Report.pdf

[Chris-]

4 hours ago, SFLUFAN said:

OLOLOLOL - KPMG has been GE's auditor for 109 years!

 

Yeah that TOTALLY gives me complete faith in their "independence"!

 

God, how I DESPISE the "Big 4"!

 

For NPOs, it is advised that you change auditors every three years.

[Commissar SFLUFAN]

11 minutes ago, Chris- said:

 

For NPOs, it is advised that you change auditors every three years.

The SOX rule for public companies is to change "audit partners" every 5 years, but you can keep using the same damned "audit firm".

 

In other words, it's utterly useless.

[Jwheel86]

5 hours ago, b_m_b_m_b_m said:

GE's long term care unit is what is doing it in. 

 

Without getting into too many details, my company has some legacy GE LTC policies, and they nearly sank this company about a decade ago. The premiums that some people have for the amount of coverage they get is INSANE, especially if you're younger. I'm talking hundreds of thousands of dollars of coverage for less than tens of dollars in premiums per year.

 

I'm not shocked tbh

So what you're saying is Medicare for All with LTC (no income or asset limit) be a great thing for business? 

[Chris-]

22 minutes ago, SFLUFAN said:

The SOX rule for public companies is to change "audit partners" every 5 years, but you can keep using the same damned "audit firm".

 

In other words, it's utterly useless.

We put out an RFP every three years, but we go back to the same firm every time. Though to be fair, the fact we do yearly independent audits at our size (an NPO with a $4 million yearly budget) is more than enough; it is terrifying how long some places go without a real audit.

[Firewithin]

1 hour ago, SFLUFAN said:

For anyone interested.

 

2019_08_15_GE_Whistleblower_Report.pdf 7.17 MB · 4 downloads

[b_m_b_m_b_m]

51 minutes ago, Jwheel86 said:

So what you're saying is Medicare for All with LTC (no income or asset limit) be a great thing for business? 

Yeah I don't give a damn about the business. I, and just about everyone here, will find another job. The fact that people can work their lives only to have everything you worked for taken away so you can afford long term care because you got Alzheimer's is horrible to me. 

[Chairslinger]

What does it really matter? Just hit them with a fine that is equivalent to .001% their yearly earnings and move on.

[b_m_b_m_b_m]

3 minutes ago, Chairslinger said:

What does it really matter? Just hit them with a fine that is equivalent to .001% their yearly earnings and move on.

That might send them over the fiscal edge from the sounds of it

[Commissar SFLUFAN]

37 minutes ago, Chairslinger said:

What does it really matter? Just hit them with a fine that is equivalent to .001% their yearly earnings and move on.

Yeah, about that...

 

Assuming that the numbers are presented in the allegations are reasonably accurate, GE is effectively insolvent.

[Chairslinger]

1 hour ago, b_m_b_m_b_m said:

That might send them over the fiscal edge from the sounds of it

 

28 minutes ago, SFLUFAN said:

Yeah, about that...

 

Assuming that the numbers are presented in the allegations are reasonably accurate, GE is effectively insolvent.

 

Fine, fine.

 

Give them a ten billion dollar bailout, fine them 50 million, and then be done with it.

 

Happy?  

[Amazatron]

The CEO just bought $2M in stock today, LOL.

[Commissar SFLUFAN]

Quote

 

Potential for Compensation

 

Prior to the initial distribution of this Report on August 15, 2019, the Company entered into an agreement with a third-party entity to
review an advanced copy of the Report in exchange for later-provided compensation. That compensation is based on a percentage of the
profits resulting from the third-party entity’s positions in the securities, derivatives, and other financial instruments of, and/or relating to,
General Electric Company (“GE”) (NYSE: GE). Those positions taken by the third-party entity are designed to generate profits should the
price of GE securities decrease.

 

Prior to the initial distribution of this Report on August 15, 2019, the Company also submitted this Report to the U.S. Securities and
Exchange Commission’s Whistleblower Program and the U.S. Department of Justice’s FIRREA Whistleblower Program. Both or either of
those submissions may generate profits for the Company independent of the financial performance of GE and/or the securities, derivatives,
and other financial instruments of, and/or relating to, GE.

 

Lastly, members of the Company are personally in possession of securities, derivatives, and/or other financial instruments of, and/or
relating to, GE, which may generate profits should the price of GE securities decrease.

At least we have disclosure that the report's author and the hedge fund paying him are either shorting GE stock or have put options for it.  Of course, that does raise potential conflict of interest concerns.

[b_m_b_m_b_m]

I read through some of the LTC portions of the report, and holy cow. I'm not an accountant, actuary, or an expert by any means on many of the items within there, but seeing my company's position given the history and other facts I know of, this is really bad for GEs long term care unit.

[b_m_b_m_b_m]

Also, thinking back to my hometown, after the power plants surrounding the town closed, many of the residents got jobs at the somewhat nearby GE aviation plant. Hopefully they can avoid a lot of the pain that is coming