GE's accounts are being investigated by the Ministry of Justice
After GE announced the current fee on October 1, the SEC expanded an ongoing investigation to include the write-down, the company said in an archiving. GE added that the Ministry of Justice also investigated the fee, as well as other matters the SEC is considering.
GE said that it provides the Ministry of Justice and the SEC with documents and other information requested.
"We work with SEC and DOJ as they continue their work in these areas," said Jamie Miller, GE's CFO, during a conference call.
SEC refused to comment on the extended GE survey. The Ministry of Justice did not respond immediately to a request.
"There will be a cloud that prevents the company before things are cleaned up," said Jeff Windau, an analyst at Edward Jones covering GE.
The SEC and the Justice Department often work closely together when investigating potential financial crimes. If the SEC finds something "problematic", it usually shares with the prosecutor's investigators, according to Tony Phillips, a criminal defense attorney at McKool Smith.
"In general, DOJ is interested when it seems that it's a bit of effort to conceal the true health of a company," said Phillips, who had previously been the Attorney General of the Justice Department's Public Integrity Section.
If the Ministry of Justice finds fault, Phillips said that the prosecutors could assess a wide range of charges against former and present GE employees, including fraud, making false statements and conspiracy.
The investigations deepen GE's legal issues. The company faces at least three different requests from the SEC, as well as two from the Ministry of Justice.
"It's definitely unusual. I do not know if companies I cover that have so many surveys going on," said Windau.
