Ge Investment Management Corp

Allegations: THE SEC ALLEGED THAT GENERAL ELECTRIC COMPANY FAILED TO DISCLOSE MATERIAL INFORMATION TO INVESTORS RELATED TO TWO OF ITS REPORTABLE BUSINESS SEGMENTS DURING THE PERIOD 2015 TO 2017.FIRST, GE FAILED TO DISCLOSE TO INVESTORS INFORMATION CONCERNING THE NATURE OF ITS REPORTED PROFIT GROWTH IN ITS POWER BUSINESS. SECOND, FROM 3Q 2015 TO 1Q 2017, GE FAILED TO DISCLOSE TO INVESTORS TRENDS IN ITS INSURANCE BUSINESS AND THE POTENTIAL FOR SUBSTANTIAL LOSSES. Status: Final Sanction Detail: $200,000,000 ON 12/31/2020 Summary: ON DECEMBER 9, 2020, GE REACHED A SETTLEMENT WITH THE SEC IN CONNECTION WITH AN INVESTIGATION RELATED TO DISCLOSURES AND INTERNAL CONTROLS WITH RESPECT TO GE CAPITAL'S RUN OFF INSURANCE OPERATIONS DURING Q3 2015 THROUGH TO Q1 2017. GE PAID A CIVIL PENALTY OF $200 MILLION AND CONSENTED TO AN ORDER REQUIRING IT TO CEASE AND DESIST FROM VIOLATIONS OF SPECIFIED PROVISIONS OF THE FEDERAL SECURITIES LAWS AND RULES PROMULGATED THEREUNDER. IN ADDITION, GE AGREED TO COOPERATION OBLIGATIONS AND TO REPORT DURING A ONE-YEAR PERIOD TO THE SEC ABOUT COMPLIANCE RELATED TO GE CAPITAL'S RUN-OFF INSURANCE OPERATIONS. GE HAS ALSO TAKEN STEPS TO ENHANCE ITS INVESTOR DISCLOSURES REGARDING INSURANCE TRENDS AND RISKS, AS WELL AS ENHANCING INTERNAL CONTROLS ON ITS INSURANCE PREMIUM DEFICIENCY TESTING (ALSO KNOWN AS LOSS RECOGNITION TESTING) PROCESS AND ADDING DISCLOSURE CONTROLS AND PROCEDURES CONCERNING ITS INSURANCE LIABILITIES. CONSISTENT WITH COMMON SEC PRACTICE, GE NEITHER ADMITS NOR DENIES THE FINDINGS IN THE ADMINISTRATIVE ORDER THAT THE SEC ISSUED IN CONNECTION WITH THE SETTLEMENT.