In a landmark decision, the Specialised Commercial Crimes Court in Pretoria has on Friday handed down a 5-year suspended sentence to former Steinhoff physician Dr. Gerhardus Diedricks Burger for his role in insider trading.
The court also ordered the confiscation of €90,000 seized by Swiss authorities following Steinhoff’s collapse.
Dr. Burger, 79, pleaded guilty to three counts of insider trading for selling his Steinhoff shares just before the company’s downfall.
It was revealed that late CEO Markus Jooste had advised him to sell the shares, which drastically dropped in value thereafter.
Dr. Burger sold shares held under his children’s trusts and at Stefana Overseas Ltd, of which he was a beneficiary.
The Financial Sector Conduct Authority (FSCA) investigated and led Dr. Burger to pay a R3 million penalty before the National Prosecuting Authority (NPA) took over the criminal prosecution.
NPA spokesperson Lumka Mahanjana hailed the court’s decision as a significant milestone in addressing one of South Africa’s most prominent corporate fraud cases.
“The sentencing of Dr. Burger serves as a stern warning to those who engage in insider trading, underscoring the importance of upholding integrity and transparency in the corporate world,” Mahanjana said.
Despite the complexities of the Steinhoff case and the tragic circumstances surrounding Jooste’s untimely death, Mahanjana reaffirmed the NPA’s commitment to holding all those involved accountable .
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