Buffett’s Berkshire Settles After Violating Iran Sanction

Berkshire Hathaway, the multinational investment group led by billionaire Warren Buffett, will pay over $4 million in fines after it was found that one of its subsidiaries “egregiously” violated US sanctions on Iran. According to the US Treasury, the Turkish branch of the Iscar Cutting Tools, bought by The Oracle from Omaha back in 2006, delivered 144 shipments of goods to Iran worth more than $380,000. The sales were directed and later concealed by senior Turkish company officials who were aware they were violating company policies and US laws. After discovering the wrongdoing, Berkshire voluntarily reported the incident to Washington and fired those involved. Over the years – and increasingly in recent months – the US has placed crippling sanctions on anyone doing business with Tehran or Iranian companies. Interestingly, Iscar is based in Israel, where it was founded by entrepreneur Stef Wertheimer. It remains Berkshire’s largest non-US acquisition to date.