BREAKING: SEC Investigating Sokol For Insider Trading

Bloomberg

David Sokol, the Berkshire Hathaway manager who resigned after disclosing that he bought stock in a firm whose takeover he helped negotiate, is being investigated by U.S. regulators, a person with knowledge of the matter said.

The Securities and Exchange Commission is probing whether Sokol, 54, bought shares in Lubrizol Corp. (LZ) on inside information that Berkshire was considering buying the company, said the person, who declined to be identified because the investigation is secret. The SEC is seeking records from Sokol’s brokerage and examining trading data from the Financial Industry Regulatory Authority, the person said.

Comments

[ain't bullshitt'n]

Yeah...Warren had no clue....WHATEVA'....AB

[Howard T. Lewis III]

Stop wasting ink. Buffett knew all along. The SEC only prosecutes moral courage and this guy and Buffett don't have any.

[Nunya Business]

I am starting to see the true fear of these people. The real currency of their businesses is their public image. A person like Warren Buffet is not concerned with Federal prosecution and neither is Sokol (I think he has collected enough bones from other people's closets to make a full skeleton); what is at stake is the public image of the company. That clean image is something that, once lost (see Goldman Sach's) they can never get back. Sure, they may be able to operate on the upper levels of corporate finance but they will never have mainstream approval which allows them to do stuff like pulling a GE and pay zero, excuse me, pay negative income taxes and have no one blink an eye until of course a certain nuclear power plant had a meltdown with the GE logo on the building occurred. A positive public image is the single best way for a business to reduce operating costs, second only to bribing/ lobbying a politician. In the case of a lost public image, companies that want to also keep that clean image all of a sudden either ask for a higher price in the case of a buyout or partnership or decide to go another way.

The fat roaches hide under the nice rug in kitchen, not close to the trash can...Berkshire is no different...

[Nunya Business]

He should've just disclosed is stock holdings in writing, offered to broker the deal under the agreement that he would have to sell his stock before negotiations began and asked for a raise, bonus and equivalent stock if the deal went through. He probably would've gotten more money under those terms than he did with his shady stock investment...and....it would've been legal and worth it to Berkshire. Essentially, any profit he is going to get by owning stock is coming from the cash price that Berkshire is paying for the company, so why not get the money from your payroll check instead of from your broker. He really is a dummy if he tried to commit insider trading when he worked for the company doing the acquisition.

[robertsgt40]

Sokol will walk or pay a $500 fine and told not to do it again. It's just one of the perks on being "chosen". I suggest he has a lot of dirt(complicity) on members of congress. Ask Douglas Feith(chosen) what happened to him for insider trading on HCA(hospital group his father founded). Zip It helps to be special.

[DailyBail]

roberts...i agree...this will likely not lead to anything...but there is the outside chance that the SEC decides to make an example of Sokol for the greater public good...fingers crossed...

[Howard T. Lewis III]

This guy and Buffett did not get rich from their own moral courage, which is required to be penalized by the S&B controlled S.E.C. these days. Buffett may well be substantially penalized with taxes and penalties to compliment confiscation for insider trading. I am sure the SEC has been watching Buffett benefit from insider trading for some time and like a cat with a mouse, they will let him believe that he is almost home clear before the pounce. And who would complain about Buffett or any of his buds being so abused.

Even though the worst most racist scum on earth is going to collect the loot, the people would applaud like at some sort of Roman Games. The confiscation would pay down some interest on the debt while America burns and Congress mewls. Dump the Fed. No more interest payments of blood and toil money to phony money. And NO MORE SOLDIERS TO BE SET BEFORE EUROPEAN INTERESTS FOR THEIR PLEASURE. WAKE UP .