The SEC (United States Securities and Exchange Commission) on Monday (18) accused a former executive of IRB Brasil of planting a false story that Warren Buffett’s Berkshire Hathaway had made an investment in the reinsurance company.
Fernando Passos, who was IRB’s executive vice president of finance and investor relations, reportedly circulated the story between February and March 2020 to support IRB’s share price, which had dropped significantly after a manager questioned the company’s financial results. .
Passos was accused of fabricating false documents about Berkshire’s non-existent investment and of causing the IRB to make false and misleading statements directly to investors and at least one analyst.
The SEC said IRB shares rose 6% after Berkshire’s fake news became public on February 26, 2020, but fell more than 40% during the two days after Berkshire said on March 3 of that year it never had been and had no intention of becoming a shareholder in the company
Passos, Berkshire and the IRB did not immediately respond to a request for comment.
The SEC said IRB shares rose 6.7% on February 27, 2020, after news of a fake Berkshire holding became public, reflecting an alleged vote of confidence by Buffett, whose conglomerate owns several insurers, including Geico Car. and reinsurer General Re.
Shares are down 43% in the two days after Berkshire said on March 3 that it was not, never was and had no intention of becoming an IRB shareholder.
The IRB announced on March 4, 2020 the resignation of Passos and then-CEO José Carlos Cardoso.
In June 2020, the IRB restated the figures for 2019 because of accounting irregularities, reducing net income by 31%.
I have over 8 years of experience in the news industry. I have worked for various news websites and have also written for a few news agencies. I mostly cover healthcare news, but I am also interested in other topics such as politics, business, and entertainment. In my free time, I enjoy writing fiction and spending time with my family and friends.
