Vox Telecom’s Douglas Reed fined R2m

Image courtesy stock.xchnge (KillR-B)

Vox Telecom founder and former Chief Executive Officer Douglas Reed has agreed to pay a R2 million fine for manipulating the company’s share price in 2008.

The Financial Services Board said yesterday the case related to contraventions of section 75 of the Securities Services Act and the “administrative penalty of R2 million was imposed on (Reed) by agreement”.

It said its Directorate of Market Abuse “took several mitigating circumstances into account, including that the respondent fully co-operated with the FSB, accepts full responsibility, regrets his actions, and that the issuer of security has taken action against him”.

The Vox Telekom board said at the time it had been informed that MacRobert wished to pursue his own personal interests and would be leaving the employ of the company.

However, Reed stayed on as part of the executive team to “drive strategy, special products and product development”.

He told MyBroadband at the time that the new position “suits me down to the ground”.

He has not faded into the background, however, and continues to speak on behalf of the company at public events. The company’s website lists him as Executive Head: Strategy and Innovation.

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