Fraud investigator Harry Markopolos' accusations extended beyond GE's management to actuaries, auditors and analysts who he claims overlooked billions in liabilities.
Fraud finder Harry Markopolos took GE stock down more than 11% in one day with a dizzying array of charts and numbers, but also some choice words accusing analysts, ratings agencies and GE's management of Enron-era behaviors.10% on Friday after GE CEO Larry Culp invested $2 million on the dip and, mostly calling Markopolos' claims inaccurate or based on old news that was already baked into GE's stock price.
He extended his accusations to actuaries, auditors and analysts who he claims overlooked billions in liabilities in GE's long-term care insurance business. Here's a selection of his barbs: "Our final three questions are for KPMG, GE's auditors for the past 110 years dating back to 1909: 1) What did you know? 2) When did you know it? And 3) Where's your 'going concern' opinion?"
Markopolos' rhetoric leavened a report heavy on complex accounting issues. But it doesn't appear to be making him any allies in his quest to expose. Nick Heymann, co-group head of global industrial infrastructure at the William Blair financial services firm, accused him of simply"You got the stock on sale yesterday for absolutely no basis," Heymann told CNBC on Friday
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