Former Steinhoff CFO Ben La Grange Pleads Guilty to R300M Fraud
Andries “Ben” La Grange, the former chief financial officer of Steinhoff, pleaded guilty to fraud amounting to over R300 million at the Pretoria Specialised Crimes Court. In exchange for his cooperation with the State and testifying in future Steinhoff prosecutions, he received an effective five-year prison sentence.
La Grange, who was initially charged with racketeering, fraud, and corruption alongside former legal head Stehan Grobler, admitted to overstating profits using fraudulent invoices valued at R376,649,872. The charges stem from the dramatic downfall of Steinhoff in 2017, which saw billions wiped off the Johannesburg Stock Exchange.
Although the prescribed sentence for fraud over R500,000 is 15 years, La Grange’s sentence was reduced due to his remorse and cooperation. State prosecutor Dries van Rensburg highlighted that La Grange had assisted the investigation and was a first-time offender.
This plea deal follows the arrest of Gerhardus Burger, a family friend of former Steinhoff CEO Markus Jooste, who was convicted of insider trading. Burger, 79, admitted to selling his shares after receiving a tip-off from Jooste before the company’s crash. Burger’s five-year prison sentence was suspended, and he forfeited the money earned from the sale.
As the case unfolds, Grobler is expected back in court, while Jooste, facing similar charges, tragically took his own life.