(Reuters) – Warren Buffet's Berkshire Hathaway Inc. on Wednesday said a $ 377 million charge recently incurred was tied to a solar manufacturing company linked to US government fraud.
Berkshire said in its first quarterly report for 2019 on Saturday it had invested $ 340 million in various tax finance funds from 2015 to 2018, before being told that the federal authorities had claimed "fraudulent income behavior" by the fund's sponsor.
"We now think it is more likely than not that the income tax benefits we acknowledged are not valid" and took the "uncertain tax position" fee associated with their investments, Berkshire told us.
Mr. Buffet's assistant Debbie Bosanek confirmed that the fee was for DC Solar. Bloomberg News previously reported its identity.
Berkshire's report had not identified the sponsor by the name, and Buffetts Omaha, Nebraska-based conglomerate, has not been accused of inaccuracy.
Lawyers for DC Solar did not immediately respond to requests for comment.
DC Solar, whose products include solar generators and light towers that can be used in sporting events, was submitted for Chapter 1
In an February 8 affidavit related For these procedures, an FBI agent told how that Benecia, California-based company appeared to have acted as a "proof of a Ponzi-type investment fraud".
The US Securities and Exchange Commission accused DC Solar's owner of Name for participating in a Ponzi system, according to a separate court application.
Berkshire's fee reduced operating profit for the first quarter to $ 5.56 billion, an increase of 5% over the previous year.
This year's results exclude the effects of Berkshire's 26.7 percent in Kraft Heinz Co., which has not yet reported revised quarterly results.
Berkshire's $ 340m investment is small compared to its $ 738.7bn asset base, including $ 191.8bn of equity investments and $ 114.2bn in cash. The company also has its own renewable energy projects.