Thread by @DawsonSField

Warren Buffet's Berkshire Hathaway company the 'victim' of fraud? Maybe, maybe not.

I retweeted this story last night but deleted it when I realized I needed to dig deeper to put it into context.
Was this fraud? Or #MoneyLaundering?
#ButNothingsHappening
theguardian.com/business/2020/…

Buffet's company bought a German manufacturing company valued at €156M for €800M.

Not the kind of deal I would expect the 4th richest oligarch on the planet to make...

Allegedly, the German company made fake orders in photoshop to claim they were doing more business.

Supposedly the company used these fake orders to pad their top line revenue, but didn't change any of the numbers below it like taxes? That should have been easy to spot by anyone, let along a firm like Berkshire Hathaway.

Then the 2 companies went to Arbitration Court where it ruled that the German owners would have to pay Buffet back the money.
Often these cases get sealed or closed out by the courts, but in this Swamp draining era, the fraud gets referred to a prosecutor!

This looks remarkably like other #moneylaundering cases that I have covered before. Someone overpays for an asset, the former owner makes the money disappear into a labyrinth of shell companies, consultants & lawyers. So the money is laundered away from a non-suspicious source.

Then later a case is filed, handled quietly, & resolved through arbitration or a settlement without too much evidence being opened up in court. Then dirty money is paid into the court (which never asks for receipts) & a off-shore money is laundered back to the original company!

In the past, the courts (who may be in on it) kept it quiet instead of handing over the evidence of fraud to the authorities!
So now we are seeing a lot of these overpaid to buy a company cases leading to indictments. Like this huge one from 2018!

https://twitter.com/DawsonSField/status/1068570864868831232?s=20

One of these cases involved a Russian serving as an Australian Defense Contractor laundering cash through the courts too. Money that may have been paying for Russian mercenaries serving in Ukraine.

https://twitter.com/DawsonSField/status/1202274431621570560?s=20

There is even a case in South Africa where judges are under investigation for helping UK banks launder $2T per year out of shell companies full of dirty money. They claim the shell company owes them or a customer money on a fake loan & judge approves.

https://twitter.com/DawsonSField/status/1217867309370486788?s=20

Another way to do this it to pay too much for an asset, like HP in the above case. Then a year or two later to do a write down on your books taking the loss. I got to wondering, if Berkshire Hathaway was doing this we would see a trend of cases where they overpaid for companies.

So what is the 1st deal that jumps out at me when I start searching?
Berkshire Hathaway & a 50-50 partnership with Brazilian private fund called 3G Capital paid $28 Billion (counting debt absorbed) to buy Heinz Foods in 2013. But BH invested twice as much for their half?

Analysts were very confused why Buffet & 3G would way overpay for Kraft & make a very questionable deal. What triggered the initiation of this deal in December of 2013?
cnbc.com/id/100442835

Many were very confused why Buffet would overpay for Heinz, what it meant as a shady deal all along?

seekingalpha.com/article/118358…

So how much money did Secretary of State John Kerry make off the sale of his wife's shared of Heinz to Buffet? Estimates vary, but they reportedly has $3M in stock in family trusts (shell companies) that was instantly transformed into $4M or more with the deal.

It's good when your $49 stocks sell for $72 in an acquisition...
Of course selling the stock could also free Kerry from requirements to recuse himself on issues that affect Heinz subsidiaries overseas!
politico.com/story/2013/02/…

So how bad was the deal for Warren Buffet? Well he & 3G Capital next moved to by Kraft & merge it with Heinz, again overpaying for it!

How badly? Bad enough that they had to write down $15 Billion! forbes.com/sites/alapshah…

Now back to Buffet's partners 3G Capital from Brazil, where did there money come from in this deal? Other than the loans from Swampy banks?
Well that seems very difficult to determine. They came out of nowhere in 2010 to buy Burger King. benzinga.com/media/barrons/…

At the time it was reported in late 2009 that they had $50M in assets yet months later they were putting up $3.26B to buy Burger King as a private venture, then turn around & do an IPO on the business & move it to Canada to save taxes....

Also this company with $3.2B from nowhere was paying more than 46% more than Burger King was worth!

I've heard people like @MuseScry wondering if a lot of money got laundered from Eastern Europe to capital firms like this to launder money into bad deals.
cnbc.com/id/38970099

Who made out on the Burger King Deal? Goldman Sachs, TPG Capital, & Mitt Romney's Bain Capital Partners... #ButNothingsHappening

So if you can start to see a trend here, then please follow me & the #ButNothingsHappening cases. There are lots of ways to hide payments into the Swamp! I am hunting them all the time.

If anyone can find a link from Privat Bank to these deals, I would love to see it!