The Financial Sector Conduct Authority (FSCA) has fined former Steinhoff CEO Markus Jooste R121-million for insider trading related to the imminent (at the time) crash in Steinhoff shares.
The FSCA also fined three other individuals for insider trading - they sold their Steinhoff shares in response to a warning received from Markus Jooste. This brings the total of the fines levied to R241-million.
If the three individuals - Dr Gerhardus Diedericks Burger, Marthinus Swiegelaar (who was Jooste's driver), and Jooste's old friend the late Ockie Oosthuizen - do not pay their fines, Jooste is liable for the additional amounts of R38-million plus R18-million, making the SMS he sent to them probably the world's most expensive SMS.
This is the largest penalty imposed by the FSCA for insider trading - the next largest is the R24-million it fined Deutsche Bank in 2019.
This is the second penalty imposed by the FSCA on Steinhoff, or individuals related to Steinhoff. The first was the R1.5-billion imposed on Steinhoff for releasing false and misleading information into the marketplace. However, this sum was remitted to R56-million because the FSCA felt that Steinhoff shareholders would end up bearing the brunt of the fine.
The third penalty...