IRB Brasil Former CFO Charged With Fraud in U.S. for Spreading False Information -- Update

By Jeffrey T. Lewis

SÃO PAULO--The U.S. Securities and Exchange Commission has charged a former chief financial officer of IRB Brasil with spreading false information that Berkshire Hathaway Inc. was an investor in the Brazilian reinsurance company to fraudulently prop up IRB's share price.

The SEC charged Fernando Passos with allegedly carrying out the scheme starting in February 2020 because of his concern about a significant decline in IRB's share price, according to the SEC.

Mr. Passos, 39, allegedly falsified documents and information and shared them with members of the press, some of IRB's directors and with IRB investors, resulting in news outlets in Brazil and the U.S. reporting incorrectly that Berkshire Hathaway was a shareholder, the SEC said

IRB declined to comment, except to say that Mr. Passos left the company in 2020 and IRB no longer has any contact with him.

IRB shares were up 0.7% at 3.06 reais, the equivalent of 66 cents, in late-afternoon trading.

Write to Jeffrey T. Lewis at [e-mail]

(END) Dow Jones Newswires

April 18, 2022 14:45 ET (18:45 GMT)

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