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Fraud Trial May Put Buffett on Stand

Posted Jan 2, 08 1:24 PM CST in Crime & Courts,  Business 

(Newser) – A criminal trial involving four ex-employees of billionaire Warren Buffett is likely to offer a rare—and unwelcome—glimpse into the inner workings of the “Oracle of Omaha,” the Wall Street Journal reports. Buffett isn’t charged in the case—to begin Monday—involving Berkshire Hathaway reinsurance unit General Re Corp. and AIG, but testimony could allege he knew about the deal.

Four General Re employees and a former AIG exec stand accused of fraud and conspiracy in 2000 and 2001 for artificially inflating the amount of loss AIG could absorb, which led to higher share prices. A defense attorney claims emails and "extensive evidence" show Buffett approved the deal and said he might call the 77-year-old to testify.

Source Wall Street Journal

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Investor Warren Buffet participates in the Treasury Conference on U.S. Capital Markets Competitiveness at Georgetown University in Washington in this March 13, 2007 file photo.   (Associated Press)
Billionaire investor Warren Buffett gestures at a fundraiser for Democratic presidential hopeful, Sen. Hillary Rodham Clinton, D-N.Y. in San Francisco, Tuesday, Dec. 11, 2007.   (Associated Press)
Berkshire Hathaway Chief Executive Officer Warren Buffett, left, talks with Conrad Teitell of Cummings and Lockwood LLC, on Capitol Hill in Washington, Wednesday, Nov. 14, 2007, during a Senate Finance...   (Associated Press)
Billionaire investor Warren Buffett talks as Democratic presidential hopeful Hillary Clinton listens onstage at a fund-raising event December 11, 2007 in San Francisco, California.   (Getty Images)
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fraud  • Warren Buffett  • AIG  • Berkshire Hathaway  • Oracle of Omaha  • General Re Corp


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