GE fined $50m by SEC
GENERAL Electric has been fined $50m (£29.5m) after being accused of manipulating its earnings to meet analysts’ expectations.
The United States Securities and Exchange Commission (SEC) alleged that the firm deceived investors, adding that “overly aggressive accounting can distort a company’s true financial condition.”
GE did not admit or deny the allegations, but agreed to pay the fine after being accused of civil fraud and other accounting related charges.
The SEC’s case was based on an investigation of the conglomerate’s accounting practices, which found that on four individual occasions between 2002 and 2003, high level GE executives signed off on accounting that did not comply with common accounting standards.
GE stated the errors “fell short of… standards”, and said it would ensure they did not happen again.