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An announcement by the Capital Market Authority regarding the issuance of a decision by The Appeal Committee for the Resolution of Securities Conflicts (ACRSC) to convict the violators of the Capital Market Law and its implementing regulations

CMA announces a decision by The Appeal Committee for the Resolution of Securities Conflicts (ACRSC) on 5-4-1433H/27-2-2012 regarding the case raised by CMA against Mohammad bin Abdulrahman bin Abdullah Al-Nuaim, Salman bin Mohammad bin Abdullatif Al-Nuaim and the investor Aishah bint Ahmad bin Abdullah Al-Mulhim. The final decision  affirmed (CRSD)'s decision to convict the accused with the violation of Article (49) of the Capital Market Law as well as Articles 2 and 3 of the Market Conduct Regulations during their trading of the shares of Saudi Kayan Petrochemical Company, Mobile Telecommunications Company Saudi Arabia, Saudi Electricity Company, Allianz Saudi Fransi Cooperative Insurance Company, Al Sagr Co-operative Insurance Co. and Filing & Packing Materials Manufacturing Co. during the period from 1/1/2008 until 31/5/2008. These practices formed manipulation and fraud and created a misleading impression. The imposition of the following penalties and sanctions is in order:

First: Mohammad bin Abdulrahman bin Abdullah Al-Nuaim

  1. Oblige him to pay all the revenue, as a result of these violations, to the CMA account. The total amount is (55,999,718.86) Fifty Five Million, Nine Hundred and Ninety Nine Thousand, Seven Hundred and Eighteen Riyals and Eighty Six Halalas.
  2. Imposition of a penalty of (300,000) Three Hundred Thousand Riyals as a result of his violations.

3.       Oblige him to refrain from trading by buying the shares of the listed companies in the stock market for three years.

4.       Prevent him from engaging in brokerage and portfolio management as well as working as an investment consultant for three years.  

5.       Prevent him from working in the companies that have shares traded in the stock market for three years.

Second: Salman bin Mohammad bin Abdullatif Al-Nuaim

  1. Oblige him to pay all the revenue, as a result of these violations, to the CMA account. The total amount is (299,926.46) Two Hundred and Ninety Nine Thousand, Nine Hundred and Twenty Six Riyals and Forty Six Halalas.
  2. Imposition of a penalty of (500,000) Five Hundred Thousand Riyals as a result of his violations.

3.       Oblige him to refrain from trading by buying the shares of the listed companies in the stock market for three years.

4.       Prevent him from engaging in brokerage and portfolio management as well as working as an investment consultant for three years.  

5.       Prevent him from working in the companies that have shares traded in the stock market for three years.

 

 

Third: It was proven that Mohammad bin Abdulrahman bin Abdullah Al-Nuaim has exercised the violating acts in the jurisdiction in which the lawsuit is brought on their client’s portfolio who is the investor Aishah bint Ahmad bin Abdullah Al-Mulhim. The investor was obliged to pay the revenues gained as a result of the violating acts done by his representatives to CMA’s account. The total amount was (13,938,855.95) Thirteen Million, Nine Hundred and Thirty Eight Thousand, Eight Hundred and Fifty Five Riyals and Ninety five Halalas.

 

By that, CMA insures its devotion to apply the Capital Market Law and its Implementing Regulations as well as protect the investors from illegal acts.