Executive Berkshire GenRe Unit Gets Wells Notice
By The Staff
May 8, 2005
Warren Buffett's Berkshire Hathaway (BRK.A) announced after the close Friday that the Securities and Exchange Commission is planning to file a civil securities complaint against a senior executive at its General Re insurance unit.
According to Berkshire, on May 2 the SEC sent the Wells notice to Rick Napier, who works out of the company's Stamford, Conn., office, over alleged improprieties of securities laws.
The SEC action comes in the midst of an ongoing investigation into General Re's reinsurance practices, including a 2000 reinsurance transaction between American International Group (AIG: NYSE ) and the company.
The company said officials at both Berkshire and General Re have been cooperating fully with the SEC and the Department of Justice. A Wells notice is handed out once the SEC concludes its investigation and decides to seek civil damages.
Berkshire shares closed Friday's trading session at $83,999.90, down $200.10.