Kevin Handelsman, former Investor Relations manager at Dimension Data, has been found guilty of “insider trading” by South Africa’s Financial Services Board (FSB) after he traded in 13,000 Dimension Data shares between 8 July 2010 and 13 July 2010.
This occurred before Dimension Data was bought out by Japanese technology company Nippon Telegraph and Telephone Corporation (NTT) in a multi-billion rand deal.
The FSB stated Handelsman’s actions were not allowed as he traded the shares “whilst in possession of inside information”.
Handelsman in defending himself said the trade was “just an unfortunate mistake”. HumanIPO reached out to Dimension Data, with Global Public Relations Manager Hilary King saying: “Because Dimension Data is not being investigated, we will not be commenting on this matter.”
Handelsman was fined R68,400.00 (US$7,656) by the FSB despite stating that he believes the amount of shares traded had no real impact on the market nor the share price.
The FSB, which has the power to impose unlimited penalties, has been investigating whether information around the buyout was leaked, leading to suspicious trade in Dimension Data shares, since July 2010.
According to the FSB, investigations into the trading of Dimension Data’s stock leading up to the buyout continue. The FSB also made it clear that the investigation “is not probing the company but rather trade in its stock”.