Warren Buffett Watch, from that same source, " Berkshire avoids massive sell-off for insurance stock hit by fraud allegations

Berkshire Hathaway completely eliminated what had been a three-quarters of a billion dollars position in Globe Life just months before fraud allegations this week cut the insurance company's stock price by almost half.

 

In a lengthy post on its website yesterday, short-seller Fuzzy Panda Research said it had "uncovered extensive allegations of insurance fraud ignored by management despite being obvious and reported hundreds of times," including "policies written for dead and fictitious people ... forged signatures ... funds withdrawn from consumers' bank accounts without approval ... fictitious bank accounts used to fund numerous fake policies, so agents hit their bonuses."

 

It also accused executives of involvement in a "bribery & kickback scheme that a lawsuit estimates netted them >$65 million."

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