Buffett: Haven’t Heard From Authorities About Galleon Probe

May 3 2010 | 12:04pm ET

In between his full-throated defense of his buddies at Goldman Sachs and his optimistic statements on the U.S. economy, Warren Buffett offered investors another bit of assurance: He hasn’t heard from the authorities about his investment in Goldman—an investment that Galleon Group founder Raj Rajaratnam was allegedly tipped off about.

At Berkshire Hathaway’s annual meeting this weekend, the Oracle of Omaha said he has not been contacted by federal investigators or the Securities and Exchange Commission, both of which are pursuing cases against Rajaratnam and others in what has been called the largest insider-trading case in U.S. history.

Last month, prosecutors told Rajaratnam’s legal team that Goldman Sachs had been added to the list of stocks he is accused of trading illegally. According to reports, former McKinsey & Co. head and outgoing Goldman director Rajat Gupta passed on word about Berkshire’s impending $5 billion investment in Goldman prior to its public announcement in September 2008.

Gupta has not been charged with, and denies, any wrongdoing.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Moore Capital PM Fired After Raucous Hamptons Party

Jul 7 2016 | 10:47pm ET

A portfolio manager for Louis Bacon’s $15 billion hedge fund Moore Capital Management...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...