Was billionaire businessman Warren Buffett’s Berkshire Hathaway cheated of $340 million as part of a Ponzi-type scheme?
Some say yes.
Jeff Carpoff, the CEO of the defunct energy company DC Solar, “lived a lavish lifestyle before the FBI raided his and his wife Paulette’s Martinez, Calif., home and DC Solar’s offices in December, court papers show,” according to the New York Post. “Among the treasures now in the feds’ possession include a car collection totalling at least 157 cars, including three Bentleys, a 1926 Ford Model T, 17 Dodge Rams, and 15 Chevy Camaros. Also seized were season tickets for the yet-to-be-formed Las Vegas Raiders NFL team worth $782,949; more than $50 million in bank accounts, over 30 properties scattered throughout California and Nevada, and a stash of jewelry, including a “three prong diamond necklace” and a Ballon Bleu de Cartier watch worth more than $6,000, court papers show.”
Berkshire Hathaway reportedly took a $377 million charge “after investing hundreds of millions in tax-equity investment funds tied to a company that federal authorities say engaged in fraud, according to Berkshire’s first-quarter regulatory filing. The investments were tied to DC Solar, Debbie Bosanek, Buffett’s assistant, said Wednesday in response to Bloomberg’s questions about the expense. That’s the mobile solar generator company that federal authorities have alleged ran a fraudulent scheme involving tax benefits.”
It was in late December, according to abc7news.com. that the FBI said it had raided a home in Martinez, California owned by Paulette and Jeff Carpoff.
“There were a lot of FBI and U.S. Marshals going in, they said it wasn’t something we had to worry about,” a neighbor told the news organization.
In a statement quoted by abc7news.com, the Carpoff’s law said that the family “was surprised and disappointed with the actions taken by the government earlier this week which appear to relate to an ongoing tax dispute. The Carpoffs are grateful for the support of their friends and family and have trust in the system to resolve this matter.”
Aside from Buffett’s company, investment firms like East West Bankcorp and Progressive Corp also reported losses involving their investments into DC Solar, Business Times reported. “The mobile solar generator company apparently bloated their capabilities in terms of providing investors with “favorable tax consequences.” Federal authorities who had investigated the business allegedly uncovered a large Ponzi-type scheme involving various investments. The US Securities and Exchange Commission has also formally accused DC Solar of engaging in a Ponzi scheme. In February, the Federal Bureau of Investigation (FBI) has determined that the firm’s operations seemed to reflect evidence of an investment fraud scheme.”
