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

CMA announces a final decision by The Appeal Committee for the Resolution of Securities Conflicts (ACRSC) dated 2-2-1435H / 5-12-2013 regarding the lawsuit filed by the Capital Market Authority (CMA) against Abdulrahman bin Abdullah bin Abdulrahman AlAbdulkarim (The first defendant) and Ayman bin Ai’d bin Mohammed AlHarbi. The ruling of ACRSC upheld the decision of the Committee for the Resolution of Securities Disputes (CRSD) convicting the first defendant of violating Article (49) of the Capital Market Law as well as Article (2) and Article (3) of the Market Conduct Regulations when trading the shares of Saudi Real Estate Co. during the period between 18/3/2007 and 28/3/20017. These practices formed manipulation and fraud and created a misleading impression. The Appeal Committee also upheld the conviction of the second defendant of violating Article (49) of the Capital Market Law as well as clause (a/1) of Article (11) of the Market Conduct Regulations because he accepted and executed the first defendant’s orders.  The following fines and sanctions shall be applied:

First: The First Defendant:
1. Oblige him to pay all the revenues he collected due to these violations to CMA’s account. The total amount is (SR 3,205,986.23) Three Million, Two Hundred and Five Thousand, Nine Hundred and Sixty Eight Riyals and Twenty Three Halalas.
2. Impose a fine on him amounting to (SR. 100,000) One Hundred Thousand Saudi Riyals as a result of these violations.
3. Prevent him from trading the shares of the companies listed in the stock market by buying them for two years.

Second: The Second Defendant is prevented from working in any registered job for six months.

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.