Insider Trading Directorate reaches settlements

By Bessie van der Lingen, sub-editor, FSB Bulletin

The Insider Trading Directorate (ITD) has reached more settlements after certain transactions in shares were investigated and referred for legal action.

The ITD has reached these settlements after having investigated the purchase of I-Fusion Holdings shares by Mr RD Sackstein, Brandcorp shares by Mr J Livingstone and Beige Holdings shares by Mr S Rogers.  Mr Sackstein has agreed to pay the ITD an amount of R1,085, 649.00, Mr Livingstone has agreed to pay an amount of R41,040.29, and Mr Rogers an amount of R800,00.  All these settlements were on the basis of not admitting guilt or liability and is without prejudice. 

And compensates claimants

The FSB has paid insider trading claimants a total of R1,782,406.  This follows the publishing of  advertisements inviting claims of persons that may have been affected by Kalahari Goldridge Mining trades on 10 June, Idion Technology trades in the period of 4 to 17 May, Beige trades in the period of 30 August to 3 September 1999, I-Fusion trades in the period of 13 to 22 April 1999, and Brancorp trades on 23 February 1999.

Mr Ian Fullerton, recently retired manager of the Inspectorate of the Johannesburg Stock Exchange, has been appointed claims officer to adjudicate claims. 

The amount of compensation depends on the amounts recovered and the number of claimants qualifying for compensation.  Claimants will not necessarily be fully compensated. 

The funds available for distribution are R14, 046 in the case of Kalahari Goldridge, R154, 745 in the case of Idion Technologies, R653,343 in the case of Beige Holdings, R935,645 in the case of I-Fusion and R24, 600 in the case of Brandcorp. 

Source:
Media Releases by the Insider Trading Directorate