The case discussed the accounting fraudulent activities at the U.S. - based market leader of electronics industry, General Electric (GE). SEC suspected that between 2002 and 2003, GE bent the accounting rules to either inflate earnings or hit the analysts' consensus earnings expectations. In 2005, SEC initiated an investigation and filed a complaint alleging the conglomerate of using improper hedge accounting and revenue recognition schemes that misled the investors. In August 2009, GE settled the claim, without admitting or denying allegations, by paying the SEC a $50 million penalty in response to this civil suit filed against the company. The case encouraged debate over the intentions of GE, since in the past, similar fraud cases were reported against this electronics giant. Moreover, the ethical implications of such irregular accounting practices were also discussed as GE had hurt and cheated its investors by indulging in such unethical practices.

1. Fortune. (2015, January 04). Most admired 2014. Retrieved from <a href=http://fortune.com/worlds-most-admired-companies/2014/general-electric-10/ target="_blank">http://fortune.com/worlds-most-admired-companies/2014/general-electric-10/</a>
2. GE History. (n.d.). From inspiration to industry. Retrieved from <a href=http://www.ge.com/about-us/history/1878-1904 target="_blank">http://www.ge.com/about-us/history/1878-1904</a>
3. GE to pay $40M to settle suit accusing it of misleading investors in 2008. (2013, April 30). Insurance Journal. Retrieved from <a href=http://www.insurancejournal.com/news/national/2013/04/30/290210.htm target="_blank">http://www.insurancejournal.com/news/national/2013/04/30/290210.htm</a>
4. General Electric Company. (n.d.). Governance principles. Retrieved from <a href=http://www.ge.com/sites/default/files/GE_governance_principles.pdf target="_blank">http://www.ge.com/sites/default/files/GE_governance_principles.pdf</a>
5. General Electric's lessons in product innovation. (2013, February 01). Strategy + Business. Retrieved from <a href=http://www.strategy-business.com/article/re00222 target="_blank">http://www.strategy-business.com/article/re00222</a>
6. Glader, P., & Scannell, K. (2009, August 05). GE settles civil-fraud charges. The Wall Street Journal. Retrieved from <a href=http://www.wsj.com/articles/SB124939838428504935 target="_blank">http://www.wsj.com/articles/SB124939838428504935</a>
7. Goldfrab, Z.A. (2009, August 04). GE to pay $50 million to settle SEC fraud charges. The Washington Post. Retrieved from <a href=http://www.washingtonpost.com/wp-dyn/content/article/2009/08/04/AR2009080401258.html target="_blank">http://www.washingtonpost.com/wp-dyn/content/article/2009/08/04/AR2009080401258.html</a>
8. Goldman, D. (2009, March 13). GE loses top rating in downgrade. CNN Money. Retrieved from <a href=http://money.cnn.com/2009/03/12/news/companies/ge_credit_downgrade/ target="_blank">http://money.cnn.com/2009/03/12/news/companies/ge_credit_downgrade/</a>
9. Guerrera, F., & Chung, J. (2009, August 05). GE settles claims of fraud in accounts. Financial Times. Retrieved from <a href=http://www.ft.com/intl/cms/s/0/97a92022-8107-11de-92e7-00144feabdc0.html#axzz3jXmlSDdR target="_blank">http://www.ft.com/intl/cms/s/0/97a92022-8107-11de-92e7-00144feabdc0.html#axzz3jXmlSDdR</a>
10. Henry, D. (2009, August 04). SEC fines GE $50 million for accounting misdeeds. Bloomberg Business. Retrieved from <a href=http://www.businessweek.com/bwdaily/dnflash/content/aug2009/db2009084_567813.htm target="_blank">http://www.businessweek.com/bwdaily/dnflash/content/aug2009/db2009084_567813.htm</a>
11. Hogan, J.M. (2009a, Sep 01). The SEC's investigation of GE accounting. Law 360. Retrieved from <a href=http://www.law360.com/articles/116750/the-sec-s-investigation-of-ge-accounting target="_blank">http://www.law360.com/articles/116750/the-sec-s-investigation-of-ge-accounting</a>
12. Hogan, J.M. (2009b, Sep 08). United States: When success raises suspicions: The SEC's risk-based investigation of General Electric's accounting practices. Mondaq. Retrieved from <a href=http://www.mondaq.com/unitedstates/x/85418/Corporate+Crime/When+Success+Raises+Suspicions+The+SECs+RiskBased+Investigation+Of+General+Electrics+Accounting+Practices target="_blank">http://www.mondaq.com/unitedstates/x/85418/Corporate+Crime/When+Success+Raises+Suspicions+The+SECs+RiskBased+Investigation+Of+General+Electrics+Accounting+Practices</a>
13. Leone, M., & Reason, T. (2009, August 04). GE settles accounting fraud charges. CFO. Retrieved from <a href=http://ww2.cfo.com/accounting-tax/2009/08/ge-settles-accounting-fraud-charges/ target="_blank">http://ww2.cfo.com/accounting-tax/2009/08/ge-settles-accounting-fraud-charges/</a>
14. NASDAQ.com. (2015, September 21). General Electric company revenue & earnings per share (2015, September 21). Retrieved from <a href=http://www.nasdaq.com/symbol/ge/revenue-eps target="_blank">http://www.nasdaq.com/symbol/ge/revenue-eps</a>
15. Schulte, E. (2002, February 09). Suffering for Enron's sins: Are the jitters overdone? The Wall Street Journal. Retrieved from <a href=http://www.wsj.com/articles/SB1013191090388676640 target="_blank">http://www.wsj.com/articles/SB1013191090388676640</a>
16. SEC sues GE over fraudulent accounting. (2011, August 01). Fox Business. Retrieved <a href=http://www.foxbusiness.com/markets/2009/08/04/sec-sues-ge-fraudulent-accounting/ target="_blank">http://www.foxbusiness.com/markets/2009/08/04/sec-sues-ge-fraudulent-accounting/</a>
17. Taub, S. (2008, September 08). Will GE hedge accounting pass muster? CFO. Retrieved from <a href=http://ww2.cfo.com/accounting-tax/2008/09/will-ge-hedge-accounting-pass-muster/ target="_blank">http://ww2.cfo.com/accounting-tax/2008/09/will-ge-hedge-accounting-pass-muster/</a>
18. Tell me, Mr. President: What is it that is so special to you about GE? (2011, January 24). If Liz were queen. Retrieved from <a href=http://iflizwerequeen.com/2011/01/24/tell-me-mr-president-what-is-it-that-is-so-special-to-you-about-ge_q_6164.html target="_blank">http://iflizwerequeen.com/2011/01/24/tell-me-mr-president-what-is-it-that-is-so-special-to-you-about-ge_q_6164.html</a>
19. United States District Court, District of Connecticut. (2009, August 04). Securities and Exchange Commission vs. General Electric Company. Retrieved from <a href=http://www.sec.gov/litigation/complaints/2009/comp21166.pdf target="_blank">http://www.sec.gov/litigation/complaints/2009/comp21166.pdf</a>