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Home / Business / The guy who found out about Bernie Madoff's fraud now says GE is going bankrupt / Boing Boing

The guy who found out about Bernie Madoff's fraud now says GE is going bankrupt / Boing Boing



Well before the collapse of Bernie Madoff's ponzi scheme – the greatest in world history! – accounting investigator Harry Markopolos had publicly accused Madoff of running a scam; now he says General Electric is "a recession away" from bankruptcy, with a "balance of crises."

Markopolos and his team just released a 1

75-page report called GENERAL ELECTRIC, A BIGGER FRAUD THAN ENRON, who accuses the company of using accounting tricks to foreclose over $ 40b in debt and to hide problems with the company's stake in oil services firm Baker Hughes.

GE does not dispute that it has $ 71b in assets and $ 106b in debt, but says it "expects to make significant progress" in reducing debt next year.

GE accuses Markopolos of giving up false claims as part of an attempt to benefit short sellers, who make money when GE's share price drops. Markopolos' research was funded by card sellers, but he says his research was motivated by his disgust at scams, not by the interests of financiers.

Markopolos also rejected claims by GE that he would profit from the fall in the company's share price because he works with a company that shortens GE shares – betting that the price will go down so it can make money off.
He did not want to name the investment firm and simply said that he is a "seeker of the truth."
"If I see accounting fraud, I follow it," he said.

Markopolos added that he had "ongoing discussions" with the Securities and Exchange Commission and the Department of Justice about their investigations into GE's accounts.
GE has said in conference filings and during revenue conference calls with analysts working with both the SEC and DOJ. The SEC declined to comment on the status of its GE probe. DOJ was not immediately available for comment.

GENERAL ELECTRIC, A GREATER FRAUD THAN ENRON [Harry Markopolos/Fraud Investigators]

Madoff whistleblowers say GE is & # 39; a recession away from Chapter 11 & # 39; [Paul R. La Monica/CNN Business]

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Cory Doctorow

I write books. My latest is: a YA graphic novel called In Real Life (with Jen Wang); a prose about art and the internet called Information Don't Want to Be Free: Laws for the Internet Age (with introductions by Neil Gaiman and Amanda Palmer) and a YA science fiction novel called Homeland (it's the sequel to Little Brother ). I talk about everything and I tweeted and tumble too.

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