A couple, Jeff and Paulette Carpoff has been accused of scamming Warren Buffet and other investors. According to a court filing, the couple pleaded guilty of $1 billion Ponzi scheme, money laundering, and conspiracy to commit wire fraud. It was also revealed that the couple used a minimum of $140 million investor money, spending it on expensive purchases including lots of properties, more than 150 cars, and a mansion in Las Vegas. When raided, police uncovered almost $80,000 cash in the house.
The couple also runs a DC’s solar business which was used to fraud Buffett’s Berkshire Hathaway conglomerate of $340 million, while looking for an alternative energy tax credits. Others who were victims of investment in the couple’s solar business are Insurance giant Progressive, Independent Bank East West Bancorp, and paintmaker Sherwin-Williams. However, Berkshire took a $377 million charge last year when the news of the fraud was released.