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Home / Business / GE defends against $ 38B fraud charges and hides LTC insurance loss – News

GE defends against $ 38B fraud charges and hides LTC insurance loss – News



General Electric does not support itself after being accused of committing a total of $ 38 billion in accounting fraud, which allegedly includes concealing $ 29 billion in losses related to long-term insurance business.

Steve Winoker, GE's vice president for investor relations, said Monday that the company operates with "absolute integrity and is behind our financial reporting," according to a report from Yahoo Finance.

"We are focused on delivering on our strategic priorities and we are still committed to providing accurate, complete and timely financial information," Winoker said.

A recent report published by accountant Harry Markopolos and his team claims that GE has hidden large losses, and the report also focused on the company's LTC insurance contracts.

The report suggests that a change in accounting rules for insurance liabilities and "substantial under-provisioning" will result in GE taking $ 29 billion additional reserve for its LTC liabilities. GE will immediately need $ 1

8.5 billion in additional reserves to pay insurance claims and $ 10.5 billion for a non-cash fee in 2021, the report said.

It also states that losses in LTC will continue to increase at an "exponential rate" until the company either applies for bankruptcy protection or finds a way to "serve" its LTC obligations.

GE initially responded to Markopolos' report last week, calling its claims "meritless"

"The company has never met, spoken to or contacted Markopolos, and we are extremely disappointed that a person without direct knowledge of GE would choose to make such serious and unjustified allegations, "the company said in a statement.

Markopolos was the notifier of Bernie Madoff, who is currently serving a 150-year federal sentence for performing a Ponzi scheme with several trillion dollars.


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