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Benevolent Billionaire Who Wanted Us to Pay More Taxes Hit With Workers Comp Siphoning Lawsuit

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Remember ten or twenty Obama PR gimmicks ago when he was trotting out Warren Buffett to make the case for higher taxes because apparently he paid less taxes than his secretary. Or some other nonsense. And briefly one of the richest men in America became a class warfare hero for demanding higher taxes. Not for actually paying them, you understand. Just making the "moral case" for them.

Here's another moral case involving his company.

Berkshire Hathaway Inc has been sued by a New York bicycle courier company over an alleged illegal scheme to cheat employers buying workers' compensation policies.

The complaint, filed late Friday by Breakaway Courier Systems, came as Berkshire's Applied Underwriters unit faces scrutiny over its workers' compensation policies, including some that have been banned by California, Vermont and Wisconsin.

Breakaway, with about 300 employees, accused Berkshire and Applied of "siphoning" premiums through a web of illegal shell companies, with diverted premiums going to unlicensed out-of-state insurers.

The plan amounted to a "reverse Ponzi scheme" where unsuspecting employers expecting to buy affordable policies instead bought costly "reinsurance" requiring them to cover each other's losses, leaving taxpayers on the hook for shortfalls when too many workers are injured on the job, Breakaway said.

It's okay. We just need higher taxes so they can be even more on the hook.

Meanwhile Warren Buffett was just recently huffing and puffing about Trump's tax returns. He wants higher taxes for the government. Maybe instead he should start by following ethical business practices.


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