According to two SEC filings this week, General Electric CEO Larry Culp bought nearly $2 million of GE stock this week, just hours after a whistleblower accused the company of a “fraud bigger than Enron”.
SEC filings show Culp bought more than 252,000 shares of GE stock for $7.93 each on Thursday, August 15. The stock price had decreased from its opening on August 15 of just higher than $9 a share. As of the afternoon on Friday, August 16, GE stock was trading at $8.76 a share, meaning Culp’s purchase earned him more than $200,000 in one day.
Earlier this week, just after the accusations, Culp purchased more than 331,000 shares of GE stock, according to another SEC filing. Culp purchased those shares for $9.03 a share. The stock purchases mean Culp now owns more than 1,170,000 shares of GE stock, more than doubling his share ownership. All told, Culp purchased nearly $2 million in GE stock this week.
As tED magazine reported yesterday, whistleblower Harry Markopolos is accusing GE of issuing fraudulent financial statements to hide accounting problems. GE has strongly denied all accusations and launched a media tour to discredit the Markopolos report.