(Photo: Waldo Swiegers / Bloomberg via Getty Images ) | The late and former Steinhoff CEO Markus Jooste. (Photo: Gallo Images / Brenton Geach) The National Prosecuting Authority (NPA) has finally nailed its first conviction in the Steinhoff fraud case, almost seven years after the case imploded in December 2017.
Former Steinhoff physician Dr Gerhardus Diedericks Burger (79) received a five-year suspended sentence at the Specialised Commercial Crimes Court in Pretoria on Thursday.
Burger, who often accompanied Steinhoff directors on overseas trips to look after their health, pleaded guilty to three counts of insider trading. His sentence was suspended for five years provided he does not contravene the Financial Markets Act and that he testifies in the criminal proceedings against his accomplices.
The court also issued a confiscation order for €90,000 (about R1.7-million), which was seized by Swiss authorities after the collapse of Steinhoff.
Read more: FSCA slaps Steinhoff’s Markus Jooste with R475m penalty, criminal case loading
While criminal mastermind and former Steinhoff chief executive Markus Jooste faced a R475-million penalty and a R20-million insider trading fine from the Financial Sector Conduct Authority (FSCA) when he committed suicide in March, he never saw the inside of a criminal court.
Read more: Steinhoff mastermind Markus Jooste reportedly commits suicide shortly after R475m fine
Jooste was found guilty of insider trading on the grounds that just before Steinhoff imploded, he sent Burger, Jaap du Toit, Marthinus Swiegelaar and the late Ockert Oosthuizen text messages warning them to sell their Steinhoff shares.
The incriminating text message, translated into English read: “You always ask my opinion, it will take Steinhoff a long time to work through all the bad news and America. So there are better places to invest your money. Take the current price immediately. And delete this SMS and don’t mention it to anyone.”
Based on the text message, Burger sold all the Steinhoff shares held under the Dieter Burger and Lane Burger trusts, of which his children are beneficiaries. He also sold 39,722 Steinhoff shares held at Stefana Overseas, where he was also the beneficiary, on the Swiss stock exchange.
When the FSCA investigated the case, it found Burger guilty of insider trading and fined him R3-million before referring his case to the NPA for criminal prosecution.
NPA spokesperson Lumka Mahanjana said the Steinhoff case was one of the most complex commercial crime cases that the DPCI and the NPA had dealt with.
“At a point when a significant breakthrough was made to enrol the case earlier this year, the main accused, Jooste, took his life on the eve of his arrest, escaping the hands of justice when it mattered the most,” she said.
Read more: Former Steinhoff executive granted bail of R150,000 as fraud case unfolds
Just days after Jooste died by suicide, former Steinhoff executive Stephanus Grobler appeared in the Pretoria Specialised Commercial Crimes court on charges of racketeering, three counts of fraud involving R21-billion, manipulation of financial statements and failure to report fraudulent activities. He was released on R150,000 bail and is due to appear in court on Friday, 4 October. DM