8-KOther EventsExhibits & Filings

BERKSHIRE HATHAWAY INC 8-K Report, Corporate Update (Jun 13, 2005)

Filed June 13, 2005For Securities:BRK-BBRK-A

Summary

Berkshire Hathaway Inc. (BRK-B) filed an 8-K report on June 13, 2005, detailing significant personnel actions and SEC enforcement activities related to its subsidiary, General Re Corporation. The report primarily concerns the termination of two former executives, John Houldsworth and Richard Napier, following their involvement in an SEC enforcement action and federal criminal charges related to alleged securities fraud involving American International Group, Inc. (AIG). Specifically, the filing addresses the SEC's actions against Houldsworth, former CEO of Cologne Reinsurance Company (Dublin) Limited (CRD), and Napier, a former Senior Vice President at General Re and AIG's account representative. Both individuals faced charges for aiding and abetting AIG in securities fraud and have entered into partial settlements with the SEC and pleaded guilty to federal criminal charges of conspiracy to misstate financial statements. Berkshire Hathaway's proactive termination of these individuals, as outlined in accompanying press releases, demonstrates a commitment to addressing corporate integrity issues within its subsidiaries.

Key Highlights

  • 1Berkshire Hathaway Inc. reported on the SEC's enforcement action and related criminal charges against former executives of its subsidiaries.
  • 2John Houldsworth, former CEO of CRD (a General Re subsidiary), was terminated by Berkshire Hathaway following SEC charges and a guilty plea for conspiracy to misstate financial statements.
  • 3Richard Napier, former Senior Vice President at General Re and AIG's account representative, was terminated by General Re following similar SEC charges and a guilty plea for conspiracy.
  • 4The SEC filed an enforcement action against Houldsworth and later amended its complaint to include Napier.
  • 5Both Houldsworth and Napier entered into partial settlement agreements with the SEC.
  • 6The company's filings include press releases dated June 6, 2005, and June 10, 2005, detailing these events.
  • 7The reported events center on alleged securities fraud involving American International Group, Inc. (AIG).

Frequently Asked Questions

This 8-K filing is primarily to report on significant personnel actions and SEC enforcement activities concerning former executives of Berkshire Hathaway's subsidiary, General Re Corporation, and its related entities, specifically in connection with alleged securities fraud involving AIG.

John Houldsworth was the former Chief Executive Officer of Cologne Reinsurance Company (Dublin) Limited (CRD), a subsidiary of General Re. Richard Napier was a Senior Vice President at General Re and served as the account representative for AIG.

Both Houldsworth and Napier faced SEC enforcement actions for aiding and abetting securities fraud and entered into partial settlements with the SEC. They also pleaded guilty to federal criminal charges of conspiring to misstate certain AIG financial statements.

Berkshire Hathaway, through its subsidiaries, announced the termination of both John Houldsworth and Richard Napier in response to the SEC actions and criminal charges. The company also issued press releases detailing these events.