As described in the indictment, in a text message sent to an individual, Passos wrote, “I will spread this story that berk [i.e., Berkshire Hathaway] bought 28MM of shares.” he added, “Then it becomes true.”
On March 3, 2020, in response to news reports, Berkshire Hathaway issued a press release denying that it was a shareholder of IRB Brasil SE. The U.S. multinational conglomerate stated that it was not currently, had never been, and had no intention of becoming a shareholder of the Brazilian reinsurance company. The following day, IRB Brasil SE’s stock price declined, causing significant losses to shareholders.
The Justice Department alleged that Passos willfully and knowingly violated federal securities laws. The defendant has been charged with one count of securities fraud and three counts of wire fraud. He will face up to 20 years in prison for each count if convicted. He remains at large.
The Justice Department filed its case against Passos in the U.S. District Court for the Southern District of Iowa.
