UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 

Release No. 96436 / December 1, 2022

ADMINISTRATIVE PROCEEDING

File No. 3-20165

In the Matter of

General Electric Company,

Respondent.

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ORDER APPROVING 

APPLICATION OF FUND 

ADMINISTRATOR FOR PAYMENT 

OF FEES AND EXPENSES AND 

APPROVAL OF THE PAYMENT OF 

FUTURE FEES AND EXPENSES

On December 9, 2020, the Commission issued an Order Instituting Cease-and-Desist 

Proceedings, Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the 

Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a 

Cease-and-Desist Order (the “Order”)1against General Electric Company (“GE” or the 

“Respondent”). In the Order, the Commission found that from 2015 through 2017, the 

Respondent, a large publicly-traded company that operates a number of lines of business, 

violated the federal securities laws when it failed to disclose material information to investors 

related to two of its key reportable segments. First, GE failed to disclose to investors 

information concerning the nature of its reported profit growth in its power business and $2.5 

billion in reported cash collections. Second, from the third quarter of 2015 through the first 

quarter of 2017, GE failed to disclose to investors worsening trends in its insurance business and 

the potential for substantial losses. GE’s insurance business ultimately incurred a $9.5 billion 

pre-tax charge against GE’s earnings for the fourth quarter of 2017 and required capital 

contributions by GE of approximately $15 billion over seven years to fund expected future 

insurance claims. The Commission ordered the Respondent to pay a $200,000,000 civil money 

penalty to the Commission. The Commission also created a Fair Fund, pursuant to Section 

308(a) of the Sarbanes-Oxley Act of 2002, so the penalty paid can be distributed to harmed 

investors (the “Fair Fund”). 

The Fair Fund consists of the $200,000,000 paid by the Respondent. The Fair Fund has 

been deposited in an interest-bearing account at the U.S. Department of the Treasury’s Bureau of 

the Fiscal Service, and any accrued interest will be for the benefit of the Fair Fund.

 

1

 Securities Act Rel. No. 10899 (Dec. 9, 2020).
2

On September 16, 2021, the Division of Enforcement, pursuant to delegated authority, 

issued an order appointing RCB Fund Services LLC as the fund administrator of the Fair Fund 

(the “Fund Administrator”) and set the administrator’s bond requirement.2

In accordance with Rule 1105(d) of the Commission’s Rules,3the Fund Administrator 

has submitted to the Commission staff two invoices for services rendered from September 16, 

2021 through March 31, 2022, totaling $15,596.87. The Commission staff has reviewed the 

Fund Administrator’s invoices, confirmed that the services have been provided, and finds the 

fees and expenses of $15,596.87 to be reasonable. The Commission staff has requested that the 

Commission authorize the Office of Financial Management (“OFM”) to pay the Fund 

Administrator’s fees and expenses of $15,596.87 from the Fair Fund in accordance with Rule 

1105(e) of the Commission’s Rules.4 

Additionally, to expedite and streamline the process for future payments, the Commission 

staff has requested that the Commission authorize OFM, at the direction of an Assistant Director 

of the Office of Distributions, to pay the Fund Administrator’s future fees and expenses from the 

Fair Fund so long as the total amount paid to the Fund Administrator, including the invoice to be 

paid, does not exceed the total amount of the approved cost proposal submitted by the Fund 

Administrator.

Accordingly, it is hereby ORDERED, pursuant to Rule 1105(d) of the Commission’s 

Rules,5that OFM pay the Fund Administrator’s fees and expenses of $15,596.87 from the Fair 

Fund in accordance with Rule 1105(e) of the Commission’s Rules.6 Further, OFM is authorized 

to pay, at the direction of an Assistant Director of the Office of Distributions, any future fees and 

expenses of the Fund Administrator from the Fair Fund in accordance with Rule 1105(e) of the 

Commission’s Rules,7so long as the total amount paid to the Fund Administrator, including the 

invoice to be paid, does not exceed the total amount of the approved cost proposal submitted by 

the Fund Administrator.

For the Commission, by the Division of Enforcement, pursuant to delegated authority.8

Vanessa A. Countryman

Secretary 

 

2

 Order Appointing Fund Administrator and Setting Administrator Bond Amount, Exchange Act Rel. No. 93029 

(Sept. 16, 2021).

3

 17 C.F.R. § 201.1105(d).

4

 17 C.F.R. § 201.1105(e).

5

 17 C.F.R. § 201.1105(d).

6

 17 C.F.R. § 201.1105(e).

7

 Id.

8

 17 C.F.R. § 200.30-4(a)(21)(vi).