Former Steinhoff medical doctor Gerhardus Diedricks Burger has been sentenced to five years suspended sentence.
In order to avoid jail time, he must not break any financial laws over the next five years and is required to testify against his accomplices.
Burger, 79, was sentenced by the specialised commercial crimescourt in Pretoria on Thursday.
According to National Prosecuting Authority (NPA) spokesperson Lumka Mahanjana, the court also ordered him to pay €90,000 (about R1.8m), which was seized by Swiss authorities after Steinhoff collapsed.
“Burger pleaded guilty to insider trading after receiving a tip-off from late CEO Markus Jooste to sell his Steinhoff shares just before the company’s collapse. He then sold shares held in his family’s trusts and other accounts on the Swiss stock exchange,” said Mahanjana.
Shortly before Steinhoff’s collapse, Jooste sent Burger, who accompanied Steinhoff directors on overseas trips to manage their health, a text advising him to sell his Steinhoff shares.
Following this, Burger sold all Steinhoff shares held under the Dieter Burger and Lane Burger trusts, where his children were beneficiaries.
“He also sold 39,722 Steinhoff shares held at Stefana Overseas Ltd, where Burger was a beneficiary, on the Swiss Stock Exchange. Shortly after these sales, Steinhoff shares plummeted and became almost worthless,” Mahanjana said.
Following the crash, the Financial Sector Conduct Authority (FSCA) investigated the transactions and found Burger guilty of insider trading.
He paid a penalty of R3m to the FSCA, which later referred the case to the NPA for criminal prosecution.
Mahanjana said as the case progressed earlier this year, a breakthrough was made, but the main accused, Jooste, took his own life on the eve of his arrest, escaping justice.
“The NPA welcomes the conviction and sentence. It’s important for the public to understand that criminal prosecutions require patience, preparation and a certain measure of certainty,” Mahanjana said.
Steinhoff was a multinational holding company that was dual listed in Germany and SA. It was liquidated on October 13 2023.
Doctor Burger given five-year suspended sentence in Steinhoff fraud case
Former Steinhoff medical doctor Gerhardus Diedricks Burger has been sentenced to five years suspended sentence.
In order to avoid jail time, he must not break any financial laws over the next five years and is required to testify against his accomplices.
Burger, 79, was sentenced by the specialised commercial crimescourt in Pretoria on Thursday.
According to National Prosecuting Authority (NPA) spokesperson Lumka Mahanjana, the court also ordered him to pay €90,000 (about R1.8m), which was seized by Swiss authorities after Steinhoff collapsed.
“Burger pleaded guilty to insider trading after receiving a tip-off from late CEO Markus Jooste to sell his Steinhoff shares just before the company’s collapse. He then sold shares held in his family’s trusts and other accounts on the Swiss stock exchange,” said Mahanjana.
Shortly before Steinhoff’s collapse, Jooste sent Burger, who accompanied Steinhoff directors on overseas trips to manage their health, a text advising him to sell his Steinhoff shares.
Following this, Burger sold all Steinhoff shares held under the Dieter Burger and Lane Burger trusts, where his children were beneficiaries.
“He also sold 39,722 Steinhoff shares held at Stefana Overseas Ltd, where Burger was a beneficiary, on the Swiss Stock Exchange. Shortly after these sales, Steinhoff shares plummeted and became almost worthless,” Mahanjana said.
Following the crash, the Financial Sector Conduct Authority (FSCA) investigated the transactions and found Burger guilty of insider trading.
He paid a penalty of R3m to the FSCA, which later referred the case to the NPA for criminal prosecution.
Mahanjana said as the case progressed earlier this year, a breakthrough was made, but the main accused, Jooste, took his own life on the eve of his arrest, escaping justice.
“The NPA welcomes the conviction and sentence. It’s important for the public to understand that criminal prosecutions require patience, preparation and a certain measure of certainty,” Mahanjana said.
Steinhoff was a multinational holding company that was dual listed in Germany and SA. It was liquidated on October 13 2023.
Disgraced Steinhoff CEO Markus Jooste dies from alleged suicide: reports
Former Steinhoff CFO La Grange granted R150,000 bail
Former director of Steinhoff group Stephanus Grobler granted bail
Jooste dies from gunshot wound on way to hospital
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