The former Chief Executive Officer of South African-based Steinhoff International Holdings, Markus Jooste, has been fined the sum of $9.9 million by South African authorities. This comes after he was found guilty of insider dealing, shortly before the company’s near collapse in 2017.
According to Bloomberg, Markus Jooste had in 2017 warned some of his close associates to sell sell off their stocks in Steinhoff International Holdings. Later that year, the company reported accounting irregularities.
Due to the irregularities, some of Steinhoff International Holdings’ major stakeholders refused to sign off on the company’s financial statements. This left the company struggling to survive.
Although Jooste had since resigned from his job, he and Steinhoff International Holdings are both the subjects of several probes and lawsuits by regulators and investors.
NOTE: Investopedia defines Insider dealing/trading as involving “trading in a public company’s stock by someone who has non-public, material information about that stock for any reason. Insider trading can be either illegal or legal depending on when the insider makes the trade. It is illegal when the material information is still non-public, and this sort of insider trading comes with harsh consequences.”
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