13 investors convicted of violating the Capital Market Law (CML) and its Implementing Regulations, and obligated them and other investors to pay SAR 42.9 million.
The Appeal Committee for Resolution of Securities Disputes (ACRSD) convicted 13 investors of violating the Capital Market Law (CML) and its Implementing Regulations, obligating them and other investors to pay SAR 42.9 million. This comes after imposing fines totaling SAR 17 million on the 13 investors for placing purchase orders that influenced the share price, some of which were linked to sale orders, while trading on the shares of listed companies. Additionally, they and other investors were obligated to pay a total of SAR 25.9 million for the illegal gains achieved in their investment portfolios.
According to CMA, the Appeal Committee for Resolution of Securities Disputes (ACRSD) issued its final decision convicting: Hmoud bin Abdulaziz bin Hmoud Aldhiyab, Nouf bint Khaled bin Ibrahim Aljeraiwi, Ibrahim bin Khaled bin Ibrahim Aljeraiwi, Mesha'el bint Shaher bin Shay' Alshadadi Alharbi, Yazeed bin Abdullah bin Abdulrahman Almahmoud, Sahar bint Zuhair bin Ibrahim Musalam, Turki bin Abdullah bin Abdulaziz Aldakhil, Muhammad bin Zaid bin Muhammad Altamimi, Noura bint Abdulaziz bin Muhammad Aljeraiwi, Abdulrahman bin Ibrahim bin Abdullah Aljeraiwi, Abdullah bin Ibrahim bin Zaid Alshethri, Khaled bin Ibrahim bin Abdullah Aljeraiwi, and Musa'ed bin Muhammad bin Abdulaziz Almunifi.
The decision concluded with the conviction of the abovementioned individuals of violating Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations, for entering purchase orders to influence the share price, some of which linked with sale orders, while trading on the shares of the following companies: Wafrah for Industry and Development Co., Tihama Advertising and Public Relations Co., Jazan Development and Investment Co., Allianz Saudi Fransi Cooperative Insurance Co., Gulf Union Alahlia Cooperative Insurance Co., Allied Cooperative Insurance Group, Arabia Insurance Cooperative Co., United Cooperative Assurance Co., Al-Rajhi Company for Cooperative Insurance, Wataniya Insurance Co., and Al-Omran Industrial Trading Co., during the period from 04/05/2020 until 20/05/2021, while trading through their investment portfolios and investment portfolios belonging to other investors which are managed by Yazeed bin Abdullah bin Abdulrahman Almahmoud and Khaled bin Ibrahim bin Abdullah Aljeraiwi.
The CMA explained that the final decision of the ACRSD came as a result of joint coordination and cooperation between the CMA and relevant concerned authorities, and in light of the public penal lawsuit filed by the Public Prosecution, referred to by the CMA, against a number of violators of the Capital Market Law and its implementing regulations.
The CMA stresses the importance of investors' confidence in the capital market for its growth and development. The CMA continuously monitors any violations, identifies the perpetrators, and processes the necessary procedures to impose deterrent penalties against them, in order to enhance the CMA's efforts aimed at creating an attractive investment environment for all categories of investors and safe from unfair or unsound practices or that involve fraud, cheating, deception or manipulation.
Furthermore, any person affected by these violations in this case is entitled to file a compensation claim (as individual or class action) with the Committee for Resolution of Securities Disputes (CRSD) for the damage he/she suffered from these violations, provided that such claim is preceded by a complaint filed with the CMA on this regard, via the following link: (File Complaint). It is worth noting that the General Secretariat of CRSD will announce to the public on its website in case of registering any class action in order to enable the rest of investors affected by such violations to apply to the CRSD to join the class action.
The CMA indicated that the GS-CRSD announced to the public on its website the identity of the violators after the violations and penalties were proven and the final decision was issued by the ACRSD. Which can be viewed through the following link:
Announcement of GS-CRSD, click here
To view the trading history and the security subject to the violation, click here
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