SEC May Bring Claims Against Former Reinsurance Executive, N.Y. Federal Judge Rules

NEW YORK — A New York federal judge has ruled that the Securities Exchange Commission may bring an enforcement action against a former Brazilian reinsurance executive who is accused of planting a false Berkshire Hathaway Inc. story to inflate his company’s stock price.

In a Dec. 21 order, Judge Gregory Woods of the U.S. District Court for the Southern District of New York found that by amending the Securities Exchange Act in 2010, Congress intended to provide for extraterritorial jurisdiction over SEC enforcement actions brought under Section 10(b) of the Act.

Fernando Passos is a former executive at IRB Brasil …