Here's the Truth About the GE "Fraud" Scandal

"Don't kick a person when they're down." That's one of the cardinal rules of sporting behavior - one that'll serve you well pretty much anywhere on or off the field... pretty much.

But let's face it: Sportsmanship ends where the market begins. Across that line, massive fortunes can be made "kicking" a company when it's down...

Take a certain shadowy hedge fund I'm following. These investors have decided to move in for the kill on a fallen American legend: General Electric.

They've fallen in behind Bernie Madoff whistleblower Harry Markopolos, who's made very public, very shocking allegations of fraud and manipulation in GE's Boston C-suite.

Markopolos - the forensic accountant who, as I said, called shenanigans on Bernie Madoff's $64 billion Ponzi scheme - has potent "do-gooder" credibility.

In fact, these allegations probably would've been front-page news had they been brought in GE's prime, or had markets not been sinking on the day. Be that as it may, the accusations battered GE's shares and made massive waves just the same.

But there's a big, big problem with Markopolos' accusations. And I have a big problem with the anonymous backers on whose behalf he's making these allegations.