By Lee Pei Suang
April 12, 2011
April 12, 2011
NEW YORK, April 12 - David Sokol, the potential heir of Warren Buffett’s empire (Berkshire Hathaway) will probably faces penalty of two times profit he gained as the result of charged with insider trading.
David Sokol resigned at March 28, 20ll by giving the Buffett a resignation letter. His resignation raised the dispute that his behavior was unethical.
According to Dealbook, David bought 92,060 stocks of Lubrizol on January 5, 2011. He then persuaded Buffett to buy the company the next week and the trading success. Thus, with his resignation which mean David will be owning the company after that.
Meanwhile, when asked about David’s resignation, Buffett said in an interview, “ It came as a big surprise when I received the resignation letter from Sokol.”
However, Sokol claimed that it is his goal since two years ago that he wanted to invest his family business. He further said that he has no more detail than that regarding his future plan.
The controversy has damaged the reputation of Buffett if he committed with hiding the truth and allowing the insider trading. Besides, it is also against to Buffett’s initial principle which is maintaining the moral in business.
It is a big strike to the Warren Buffett’s kingdom at which Buffett lost his most potential heir and damaged the reputation of Buffett as well as the company’s.
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