Shares of General Electric came under pressure yesterday at the start of trading following allegations of accounting fraud. As a result, stocks saw a decrease of up to 18%. Harry Markopolos, known as the abuser who knocked Bernie Madoff down and behind bars, noted in a 175-page report that General Electric had written fake accounts in his books to hide the extent of his accounting problems. General Electric and CEO Larry Culp denied the report immediately. Culp said the allegations are false and driven by market manipulation.
Markopolos's report is said to have been commissioned by a hitherto unknown hedge fund from the US that seeks to make a profit by betting against General Electric.
However, GE's CEO took advantage of the large price slide and bought its own shares. The SEC filing made it clear that Culp was buying 252,200 shares for $ 7.93 each. Culp, which took over the troubled industry group last year, roughly doubled its stake in GE stock this week, according to the filing.
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Card as a role model
This was the case in Germany earlier this year. Again and again, the Wirecard payment provider must withstand the attacks and claims of hedge funds. In the case, there were reports from the Financial Times, which also raised the group's suspicions of corruption. However, the claims could not be confirmed and Baffin's financial supervision began to be determined due to market manipulation.