Despite being celebrated as the most successful value investor in history, Warren Buffett has faced significant financial missteps and controversial choices. His investment in Salomon Brothers during the 1987 market crash resulted in substantial losses, while his support for Goldman Sachs amid the 2008 financial crisis sparked public backlash. While some of his decisions brought financial gains, others led to criticism regarding his involvement with risky financial practices.
The Pitfall at Salomon Brothers
In an era marked by financial turmoil, Warren Buffett encountered one of his most notable setbacks when he invested heavily in Salomon Brothers. Shortly after committing $700 million to the bond-trading giant, the company disclosed a significant loss due to reckless junk-bond trading. This incident not only cost Buffett a considerable portion of his investment but also mirrored the Lehman Brothers collapse two decades later, contributing to the 1987 market crash.
This debacle highlighted that even the most seasoned investors can face monumental failures. Buffett’s involvement with Salomon Brothers demonstrated how swiftly market conditions can change and how vulnerable even large-scale investments can be. The aftermath of this episode underscored the importance of thorough risk assessment and highlighted the potential consequences of underestimating market volatility. Although the situation eventually stabilized, it served as a stark reminder of the unpredictable nature of financial markets.
Gambles on Goldman Sachs Amid Crisis
During the height of the Great Recession, Buffett made another bold move by investing $5 billion in Goldman Sachs, a decision that polarized public opinion. While Berkshire Hathaway reportedly earned billions from this venture, Buffett faced scrutiny for defending the bank amidst accusations of irresponsible behavior related to subprime mortgage-backed securities.
His unwavering support for Goldman Sachs raised questions about ethical considerations in high-stakes finance. Critics argued that Buffett’s actions indirectly endorsed risky financial practices that contributed to the global economic downturn. Despite the financial success of this investment, the controversy surrounding it lingered, reflecting broader societal concerns about accountability and transparency in corporate decision-making. Buffett’s choice to prioritize profit over public perception highlighted the complex dynamics between personal wealth accumulation and social responsibility in the world of finance.
A significant legal action has been initiated against a group of eight individuals accused of orchestrating an intricate fraudulent loan scheme targeting small business owners nationwide. According to U.S. Attorney Alina Habba, the operation, which began during the peak of the pandemic in June 2020, involved deceptive practices that lured victims into paying upfront fees for promised loans or lines of credit that never materialized. The accused hail from various locations, including Monmouth County and Miami, with most appearing before a federal magistrate in Newark, barring a few who faced different circumstances.
The alleged fraudsters employed sophisticated tactics to gain the trust of their victims. They impersonated employees of legitimate-sounding corporations, some of which they had officially registered in New Jersey and New York. By using aliases and real names interchangeably, they contacted potential victims via phone calls, text messages, and emails, offering financial assistance. Victims were often misled into believing that an upfront payment was necessary either to verify their ability to repay or to purchase a surety bond due to insufficient credit scores. In some cases, large sums were sent to victims under the guise of improving their creditworthiness, only to be repaid later as part of the scam. One notable case involved a business owner from Oklahoma who lost nearly $150,000 after complying with such instructions.
This fraudulent activity not only deprived numerous small business owners of their hard-earned money but also channeled illicit gains into personal accounts used by the defendants for private expenditures. Despite extensive investigations led by the FBI, the stolen funds have yet to be recovered. A subsequent phase of the scheme emerged in late 2022 when a subset of the accused began operating from an office in Hazlet, continuing similar fraudulent activities. If found guilty, the defendants face substantial penalties, including up to two decades in federal prison and hefty fines. This case underscores the importance of vigilance and thorough verification processes when engaging with entities promising financial aid, highlighting society's need for increased awareness and protection against such predatory schemes.
A significant class action lawsuit against Facebook, involving the improper collection and storage of personal data, has resulted in a $90 million settlement. Individuals in the U.S. who visited non-Facebook websites featuring the "Like" button during a specific period were eligible to file claims for compensation. Payments, distributed through various digital platforms or checks, began in April 2025 after deducting legal and administrative costs.
Eligibility and Settlement Overview
This section examines who qualifies for compensation and provides an overview of the settlement process. People across the United States visiting third-party sites with the Facebook "Like" button between 2010 and 2011 could claim part of the settlement. The final payout depended on the number of valid claims received.
The lawsuit alleged that Facebook improperly gathered and stored user data when individuals accessed third-party websites displaying the "Like" button. This action spanned a designated timeframe, making millions potentially eligible. The total settlement amount, after subtracting attorney fees and court-related expenses, was divided among those submitting verified claims. Those who took advantage of this opportunity would receive their share via multiple convenient payment methods such as PayPal, Venmo, Zelle, virtual prepaid cards, or traditional checks.
Receiving Your Share of the Settlement
This segment focuses on how eligible individuals can expect to receive their portion of the settlement. Payments commenced in early 2025 following the validation of claims. Various options ensure accessibility and convenience for recipients.
Once the claims process concluded, approved participants started receiving payments in April 2025. The distribution mechanism included popular digital platforms like PayPal, Venmo, and Zelle, offering flexibility for modern users. For those preferring traditional methods, checks were also available. Each individual's exact payment was calculated based on the remaining funds after covering all necessary expenses, then evenly distributed among verified claimants. It is essential for potential beneficiaries to understand these details to maximize their chances of receiving compensation accurately and efficiently.