Brad Mart said in an April 5 complaint that Buffett “took no action to address the shortcomings” of the RV maker, including withdrawing money from factory vending machines and depositing it into a personal account of Forest River CEO Peter Liegl. A Berkshire representative said Mart never spoke to Buffett about unethical behavior during three conversations and that a company investigation found no illegal activity. “Mr. Mart did not alert Mr. Buffett to any unethical, fraudulent or illegal activity in Forest River,” Berkshire Secretary Forrest Krutter said in an interview today. Krutter said Buffett asked him to conduct a review of the RV maker related to “commercial items.” “During the investigation, these allegations came to light,” Krutter said of the fraud allegations. “My investigation did not reveal any fraudulent, unethical or illegal activity.” Krutter said he saw “no evidence or evidence” that the death threat allegations were valid and that the reasons for Mart`s firing were not related to his claims. The investment firm has tapped into Morgan Stanley`s asset management arm to raise $6 billion for its upcoming venture capital fund. Along with Dale Glon and Jürgen Boessler, who also had experience in bodywork, Liegl bought the small Van American company in Elkhart, Indiana in 1985. They incorporated it into Cobra Industries, Inc. and sold the company in 1993 to a group of private investors who kept Liegl as managing director. But two years later, Cobra ran into financial trouble and Liegl left the company, leading the company to file for bankruptcy the same year.

Angelica Schultis, an attorney for Mart, declined to comment. Liegl founded Forest River a few months later, in 1996, which now owns much of Cobra`s former facilities. As the company`s founder, president and CEO, Liegl continues to lead Forest River. He was inducted into the RV/MH Hall of Fame in 2009. Berkshire Hathaway Inc. has been sued by a former executive at its recreational vehicle company, who said he was fired after making allegations of “millions of dollars” of fraud to executives such as President Warren Buffett. Forest River employs about 5,355 people, according to Berkshire`s 2009 annual report. The unit sells sanitary trailers and pontoon boats in addition to recreational vehicles, according to the company`s website. Warren Buffett`s negotiations with Forest River founder Peter Lieggl would last just 20 minutes when Berkshire Hathaway, Inc. acquired Forest River in 2005.

They ended with Buffet, one of the world`s most successful investors, asking Liegl to do what he did. Mart said Liegl required Forest River to buy parts at inflated prices from a company it owned and required employees of the RV manufacturer to use its air charter service for business travel. Liegl`s conduct included “appropriating hundreds of thousands of dollars in cash from factory automatons,” according to the lawsuit. The regulator alleges that Goldman`s asset management unit failed to properly weigh environmental, social and governance factors in certain investment products. Mart was fired early last year after helping organize the 2005 Berkshire deal to buy Forest River for about $800 million. Mart said he was appointed managing director of the company`s financing business after it was bought by Berkshire, and then said in 2007 that he would succeed Liegl as CEO. Mart said he reported violations to Buffett in six separate phone calls. Republicans want tax breaks for private equity, manufacturers and businesses, while Democrats want to expand the child tax credit.

Liegl also used “phantom payroll” to allow former employees to receive salary or benefits from Forest River as part of a “fraud against Berkshire Hathaway shareholders,” according to the complaint. The Toronto-based company said it would use the proceeds of its U.S. asset management unit`s planned IPO to improve its balance sheet. The Berkshire Code states that the company will “adhere to the highest level of business ethics” and that retaliation against employees who report violations in good faith is prohibited. Buffett told Congress in 1991 that he sent a message to Salomon Inc. employees after an obligation scandal: “Lose money for the company and I`ll understand; Lose a breath of reputation for the company, and I will be ruthless. BIO Pete is a long-time industry manager and promoter who has developed several businesses. Beginning in 1996, he expanded and acquired his current business into the largest manufacturer of towable RVs in the country and the largest employer in Elkhart County, providing jobs for more than 6,500 workers. He is a resourceful entrepreneur and an active cheerleader for the RV industry for many years. He is best known for making his company the largest private manufacturer in the industry and selling it to Warren Buffett, bringing Berkshire Hathaway`s prestige to the RV industry. “Because Mart followed Berkshire Hathaway`s Code of Conduct and Ethics and reported known or suspected violations of the Code by Liegl and Forest River to Warren Buffett, Mart lost his job,” the lawsuit states.

Liegl “fared much better, kept his position as CEO of Forest River and kept the millions of dollars he lost. Prior to founding Forest River in 1996, Liegl was an executive at Coachmen Industries, Inc., where he had an 11-year career. Liegl worked there as sales manager and president of the company`s subsidiary, Shasta RV, before co-founding Cobra Industries. The proportion of savers withdrawing money from their distressed retirement accounts increased by 24% in the 12 months to September 30. Mart is running for CEO of Forest River, which he says was promised, according to the lawsuit in federal court in South Bend, Indiana. He also sought damages, including compensation for his loss selling his home in Illinois when he bought a new property in anticipation of transportation. He accused Forest River, based in Elkhart, Indiana, of breaking the contract and said Liegl threatened his life.