Dealstream took money

Control: Dealstream took money

Sep 25 2008 6:45PM

Johannesburg - Control Instruments (CNL) said on Thursday that Dealstream's positions in the company's securities have been assumed by one of Dealstream's counterparties.

It was announced earlier this week that Dealstream Securities had ceased trading.

"Control Instruments has contacted the counterparty with the aim of facilitating the orderly take-up of these Control Instruments securities," Control Instruments said.

"Control Instruments used Dealstream to acquire approximately 23m shares in the open market and its total expenditure in respect of these shares is approximately R10.4m. Dealstream held approximately R3.4 million of Control Instruments' cash, the recoverability of which the company believes has been materially prejudiced.

"Directors of Control Instruments also hold accounts with Dealstream. Neither the Group's nor the directors' accounts were in default of their margin requirements at the time Dealstream ceased trading. On the contrary, the directors' accounts had substantial cash balances as the directors had introduced their own equity to ensure that more than sufficient cover existed at all times.

"Based on the information available it appears that Dealstream and/or its management and staff misappropriated the funds in the Group's and the directors' margin and trust accounts. Control Instruments and its directors are currently taking legal advice in respect of claims that they may have against Dealstream and its staff," Control Instruments said.

"None of the above should have any impact on the day to day operations of the group's subsidiaries," the company added.

- I-Net Bridge

Comments

Gerry on 2008/09/25 08:27:40 PM - Dealstream and Control Instruments So does this mean that Control Instruments Directors (or any other company for that matter) can trade shares in their own company via Dealstream without anyone being able to see that it is they who are trading? Does this avoid a lot of pesky legal stuff that requires all sorts of declarations when a director deals in their own securities? )

Ghosts on 2008/09/25 08:23:28 PM - Dealstream I wonder how many other Companies will be coming out of the woodwork with similar stories in the next couple of days.

Ghosts on 2008/09/25 08:23:05 PM - Dealstream I wonder how many other Companies will be coming out of the woodwork with similar stories in the next couple of days.