The United States Securities and Exchange Commission (SEC) on Monday (18) accused a former IRB Brasil executive 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 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.
Source: CNN Brasil
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