Mac Murray

Posts Tagged ‘GE’

General Electric Busted for Creative Accounting

In MYTHS & Markets on August 5, 2009 at 7:39 PM

What's become of the house Jack built?

What's become of the house Jack built?

GE to settle SEC charges

August 5, 2009

General Electric Co. will pay a $50 million civil penalty to settle charges filed by the Securities and Exchange Commission accusing the conglomerate of improper accounting in order to make its financial results appear more attractive to investors.

The SEC said that GE violated securities laws four times between 2002 and 2003 when accounting for items such as commercial paper funding and the sale of train locomotives and aircraft engine spare parts. The SEC said the changes helped GE maintain a string of earnings that beat Wall Street expectations each quarter from 1995 through 2004.

“GE bent the accounting rules beyond the breaking point,” Robert Khuzami, head of the SEC’s enforcement division, said in a statement. The company didn’t admit or deny the allegations.

Source:  Chicago Tribune