/ 11 July 1997

Broker expelled for R5m fraud

FRIDAY, 11.00AM

STOCKBROKER Gerrit Steenkanmp, a former director of two broking firms, on Thursday pleaded guilty before a SA Institute of Stockbrokers disciplinary inquiry of fraud involving the misappropriation of R5-million in client funds between August 1994 and April this year.

The institute expelled Steenkamp from its ranks and he may now face criminal and civil charges. The committee found Steenkamp guilty of improper conduct which was “discreditable, dishonorable, dishonest, irregular and unworthy, and which tended to bring the profession of stockbroking into disrepute”. Steenkamp’s estate was sequestrated last year.

The disciplinary committee said it expects clients affected by Steenkamp’s actions will not suffer any loss. JSE surveillance and finance director Bill Urmson said any losses that cannot be recovered from the guilty parties will be covered by the JSE’s fidelity insurance fund, set up to protect investors from losses due to tainted scrip, computer failures and fraud.