Sokol's Berkshire actions may trigger government investigation

[Omaha Steve]

Source: Omaha World Herald-AP

By Steve Jordon

David Sokol's actions in a $9 billion acquisition by Berkshire Hathaway Inc. will trigger a government investigation, a former federal enforcer said Thursday, but are unlikely to result in sanctions against him.

Still, the ethical issues behind Sokol's trades in Lubrizol Inc. are magnified by the high-integrity reputation of his former boss, Omaha investor Warren Buffett. Thursday brought a firestorm of criticism that Sokol's stock purchases were improper and that Buffett should have reacted more strongly.

“It's anti-capitalism. It's anti-America. It's wrong,” said Tim Mazur, chief operating officer of the Ethics and Compliance Officer Association of Waltham, Mass., a national corporate ethics group. “It's just greed and self-interest.”

The Wall Street Journal, citing unnamed sources, said Thursday that the Securities and Exchange Commission is considering an investigation, and already had been investigating trading patterns of Lubrizol stock. It's not unusual for the SEC to look at trading that occurred before the announcement of a big deal.


Read more: http://www.omaha.com/article/20110401/NEWS01/704019886#sokol-s-berkshire-actions-may-trigger-government-investigation

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In my grade school years I used to play football with David. His dad a was a union butcher at Safeway. Marta worked for his company 15 years ago. He owned the most expensive home in town at that time. He always wanted a squeaky clean reputation. This was a dumb mistake. He must have changed a lot as he moved up in the business world. He is a flaming R. Buffett is a D. Buffett still lives in a modest home he bought in the 50's. We drive by it once a month or so.

Photo: http://www.omaha.com/apps/pbcsi.dll/bilde?Site=OW&Date=20110401&Category=NEWS01&ArtNo=704019886&Ref=AR&maxw=490&maxh=275
David Sokol