Two nailed by FSB over insider trading

The latter was responsible for issuing a statement to the JSE on March 14 2005 that mistakenly forecast that Scharrig’s headline earnings would be between 160% and 170% higher than the previous comparable period. Moneyweb notes that this forecast was later revised downwards on April 7 2005 to the correct forecast of between 90% and 105% higher. In the days following the second announcement, the Scharrig share price fell 18% from R3.20 to R2.61. According to the FSB, Holland made an offer of settlement of R108 440 in relation to 76 000 Scharrig Mining shares that were purchased by him on March 9 2005, which it has accepted. The FSB also imposed a penalty of R750 000 on Holland and Scharrig jointly and severally. On September 19, the FSB announced it had received an offer of R180 600 from Katzenellenbogen in connection with a trade made by the Dinnypet Trust (of which Katzenellenbogen is apparently a trustee) in which 215 000 shares were sold on April 6 2005. Full Moneyweb report