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After GE announced the looming charge on Oct. 1, the SEC has expanded an ongoing investigation to include depreciation, the company said in a statement. GE added that the Ministry of Justice was also investigating this charge as well as other issues being considered by the SEC.
GE indicated that it provided the Department of Justice and the SEC with the requested documents and other information.
"We are working with the SEC and the GM in furthering their work on these issues," said Jamie Miller, GE's chief financial officer, during a conference call.
The SEC declined to comment on the expansion of GE's investigation. The Department of Justice did not immediately respond to an investigation.
"It will be a cloud that will dominate the company until everything is cleaned up," said Jeff Windau, an analyst at Edward Jones, who covers GE.
The SEC and the Department of Justice often work closely together when investigating potential financial crimes. If the SEC finds something "problematic", it usually shares it with Justice Department investigators, according to Tony Phillips, McKool Smith's criminal defense attorney.
"In general, the Justice Department is interested in everything that seems to be done to conceal the true health of a company," said Phillips, who was previously the defense attorney for the US Attorney General's Department. the public integrity of the Department of Justice.
If the Department of Justice discovers wrongdoing, Phillips says prosecutors could look at a wide range of charges against past and present GE employees, including fraud, misrepresentation and conspiracy.
The investigations deepen GE's legal issues. The company faces at least three different investigations from the SEC and two from the Department of Justice.
"It's quite unusual – I do not know of covered companies that are conducting so many investigations," Windau said.
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