You can now read 5 articles in a month for free on Read as much as you want anywhere and anytime for just 99¢.

SEC won’t press Berkshire charges

NEW YORK — The Securities and Exchange Commission has decided not to file insider trading charges against David L. Sokol, a onetime top lieutenant at Berkshire Hathaway, Sokol’s lawyer said Thursday.

Sokol came under scrutiny in 2011 after abruptly resigning as chairman of Berkshire’s MidAmerican Energy Holdings, one of the many holdings of the investment conglomerate run by the billionaire Warren E. Buffett. At the time, Berkshire revealed that Sokol bought shares in Lubrizol, a maker of lubricants that he wanted Buffett to buy. Sokol bought the shares two months before Berkshire announced a $9 billion acquisition of the company. After the deal was announced, the value of his Lubrizol stake rose by $3 million.

Continue reading below

Sokol’s lawyer, Barry Levine, said the SEC informed his client Thursday it had decided not to pursue charges related to the trades.

Levine said he was happy that his client was ‘‘exonerated’’ and that Sokol never acted improperly in the trades. ‘‘He is the paragon of rectitude,’’ said Levine, a partner at the law firm Dickstein Shapiro in Washington.

John Nester, a spokesman for the SEC, declined to comment on Thursday. The agency typically does not comment when it decides not to pursue action in a case. The news was first reported online by The Wall Street Journal.

Loading comments...
Want each day's news headlines delivered fresh to your
inbox every morning? Just connect with us
in one of the following ways:
Please enter a valid email will never post anything without asking.
Privacy Policy
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of
Marketing image of