The Court handed down convictions to three persons: a citizen of Canada received a prison sentence of three years and two months, a publisher of a stock market newsletter with a previous conviction received a sentence of one year and ten months on probation, and the former editor of a news magazine received a sentence of one year and nine months on probation. The publisher of the stock market newsletter and the former editor are also required to pay fines of €350,000 and €200,000 respectively. Another alleged main perpetrator who is resident in Austria was also charged with offences. However, as market manipulation does not constitute a criminal offence in Austria, the defendant was not extradited to Germany and the case against him could not proceed.

The shares of De Beira Goldfields Inc. were listed in the regulated unofficial market (Freiverkehr) of Deutsche Börse AG in February 2006. At first there was almost no turnover of the shares. In May and June 2006, the three convicted persons manipulated the share price significantly higher within a short time by making massive recommendations in stock market newsletters. They recommended buying the shares on a total of 62 occasions – whilst giving incorrect and misleading information – without disclosing that they themselves were holding large numbers of the company’s shares (so-called scalping). These publications had a proven effect on the share price listing on the stock exchange. The share price shot up from the middle of May 2006 and was at its highest level of €18.50 in mid-June 2006. At the same time, the trading turnover increased significantly. From mid-2006 both trading turnover and share price began to decline, until there was almost no discernible turnover once again and the share price was almost zero. According to the findings of the Court, the manipulations generated profits totalling €38 million.

The investigations by the Public Prosecutors Office in Stuttgart were preceded by an investigation by BaFin into market manipulation. BaFin had investigated the circumstances, requested comprehensive assistance from foreign supervisory authorities and uncovered the hidden positions – made via various companies – and sales by the convicted persons. BaFin employees gave evidence at the trial as witnesses and expert witnesses.

The verdict of the Stuttgart Regional Court is not yet final.