Brazil regulator charges former IRB execs with securities-related violations

RIO DE JANEIRO, Nov 25 (Reuters) - Brazil's securities regulator has pressed civil charges against two former executives of IRB Brasil Resseguros SA for their alleged role in an episode that caused shares in the reinsurer to drop 34% in one day, authorities said in a statement on Thursday.

In March 2020, IRB said in a securities filing that Berkshire Hathaway International Insurance Ltd was an investor in the company and had recently increased its stake. That prompted Warren Buffet's investment company to release a statement saying it was not a shareholder and had no intention to be one in the future.

Shortly thereafter, much of the management was fired and Brazil's securities regulator, known as the CVM, said it was opening a broad investigation into the company.

In a Thursday statement, the CVM said it would charge former Chief Executive José Carlos Cardoso with releasing false information to the market and former Chief Financial Officer Fernando Passos with market manipulation.

Reuters could not immediately reach either man on Thursday night. A representative for IRB did not immediately respond to a request for comment outside business hours.

Charges from the CVM are civil in nature and often lead to fines. The regulatory body can and often does refer matters to federal prosecutors when it believes there are grounds for criminal charges. (Reporting by Gram Slattery; editing by Jonathan Oatis)