Steinhoff ex-CEO fined for insider deals

Bloomberg

Steinhoff International Holdings NV former Chief Executive Officer Markus Jooste has been fined more than 162 million rand ($9.9 million) by a South African regulator for insider trading ahead of the retailer’s near collapse almost three years ago.
Jooste sent a text message to four people warning them to sell their stock in the company in the days before it reported accounting irregularities in December 2017, the Financial Sector Conduct Authority (FSCA) said in a statement. Three of them acted on the advice and have been penalised smaller amounts.
Steinhoff shares went on to lose more than 90% of their value after the then-owner of Pep stores across Africa and Mattress Firm in the US said its auditors wouldn’t sign off on financial statements, leaving the company battling for survival. Jooste quit the same day, and was later accused by the company of being one of eight individuals linked to questionable transactions. He and the retailer are involved in several probes and lawsuits by investors trying to recoup their losses.
“That’s probably the most expensive SMS sent
in South Africa’s history,” said Brandon Topham, the FSCA’s divisional executive for investigations and enforcement. “The moral of the story for the public is even if you don’t trade and you just provide information, you can still be liable for a pretty serious administrative penalty.”
Jooste didn’t immediately respond to a call and message to his mobile phone, though the FSCA said he did appear before the regulator and has denied wrongdoing. The ex-CEO’s lawyer, Callie Albertyn, confirmed Jooste received notification from the regulator, and that they are considering their response, including a potential appeal.