The FBI and Securties and Exchange Commission are investigating illegal trading of Heinz (HNZ) stock, red flagged by a large purchase on 2/13/13 from a dormant Swiss account just one day before Heinz was bought by Warren Buffet’s Berkshire Hathaway (BRK.A) and 3G Capital. This acquistion was a $28 billion deal, which increased Heinz’s stock value by 20% in one day.
Tags: Berkshire Hathaway, Securities and Exchange Commission, stock market, Acquisition, heinz, fraud, SEC, federal investigation, insider trading, 3G Capital
When considering the acquisition of a Foreign entity, it is prudent to review their internal controls for any issues that could be cited under the Foreign Corrupt Practices Act (FCPA). Large fines and increasing enforcement are causing companies to think twice before jumping in to new deals.
Tags: Internal Controls, segregation of duties, FCPA, risk assessment, Acquisition, Sarbanes-Oxley
