Berkshire Hathway Conned Out of $300 Million

[The Observer]

This seems to have fallen below our radar here, but I think it is important enough to point out that Ponzi schemes can even take the smartest of investors.

The subject is a pair of grifters by the names of Jeffrey and Paulette Carpoff, husband and wife. They started up two companies, DC Solar Solutions Inc. and DC Solar Distribution Inc., and promised investors that they would receive tax writeoffs, lease payments and profit checks from the building and employment of mobile solar generators. The scam ran for several years and attracted a number of big investors, including Warren Buffet's Berkshire Hathaway.

Here is a copy of the SEC indictment.

And also is the Forbes article with more specifics.

As with all Ponzi schemes, there are the typical themes: promises of great returns on your investment, claims that the company is producing a product in numbers that don't really exist, large amounts of monies invested, payments being made to the original investors at the expense of the new investors and the grifters skimming the money off for luxury items and living.

[notorial dissent]

Have to admit total news to me, haven't seen anything where I usually check, although I don't troll the financial stuff much anymore.

[The Observer]

And the principals have already pleaded guilty according to this DOJ release.