GE hit with civil fraud charges

5 August 2009

The Securities and Exchange Commission has filed civil fraud charges against General Electric (GE) after the firm allegedly reported misleading results in its financial reports.

This, the SEC argued, resulted in investors being misinformed about the position of the company.

GE has agreed to pay a $50 million fine in order to settle the charges, which were brought after the SEC carried out a risk investigation of the firm that found four separate accounting violations that began in 2003.

The last of the infringements was corrected last year and director of the SEC's division of enforcement David Bergers said that the business had "bent the accounting rules beyond the breaking point".

"GE misapplied the accounting rules to cast its financial results in a better light," he stated.

Last month, the SEC filed charges against an Abu Dhabi man accused of carrying out suspicious trading that generated a profit of over $450,000.

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