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An Announcement from the Capital Market Authority regarding the decision issued by The Appeal Committee for the Resolution of Securities Disputes to convict violators of the Capital Market Law and its implementing regulations

​The Capital Market Authority announces that the Appeal Committee for the Resolution of Securities Disputes has issued its decision dated 25/02/1437H corresponding to 07/12/2015 regarding the lawsuit filed by the Capital Market Authority against Sharaf bin Mohammad bin Suhaim Alhariri Alzahrani, Mohammad bin Abdullah bin Ibrahim Almuqbil, Sara bint Rashid bin Ghalib Abo Subai’e, Sameer bin Mohammad bin Mustafa Alheleesi, Ayedh bin Rashid bin Jama’an Al Midawi Alkahtani, Mohammad bin Saeed bin Ahmad Al Breeq Alasmari, Saleh bin Sulaiman bin Mohammad Alhusan, and Mohammad bin Rasheed bin Abdullah Alrasheed. The decision upheld the previous decision issued by the Committee for the Resolution of Securities Disputes convicting the defendants for violating Article (49) of the Capital Market Law and Article (2) and Article (3) of the Market Conduct Regulations for trading the shares of the following companies: ( Saudi Re for Cooperative Reinsurance Co., AXA Cooperative Insurance Co., Al-Ahlia Insurance Co., Arabia Insurance Cooperative Co., Alkhaleej Training and Education Co., Gulf General Cooperative Insurance Co., Arabian Shield Cooperative Insurance Co., Saudi Indian Company for Cooperative Insurance, Al Sagr Cooperative Insurance Co., United Cooperative Assurance Co., ACE Arabia Cooperative Insurance Co., Allianz Saudi Fransi Cooperative Insurance Co., Solidarity Saudi Takaful Co. , Tourism Enterprise Co., Saudi Printing and Packaging Co., and Middle East Specialized Cables Co.) during the period between 04/09/2010 until 31/01/2011. These practices formed manipulation and fraud and created a misleading and incorrect impression about the mentioned companies. The following fines and sanctions shall be applied:
First: The Defendant/ Sharaf bin Mohammad bin Suhaim Alhariri Alzahrani

  1. Oblige him to pay 590,695.05 Five Hundred and Ninety Thousand and Six Hundred and Ninety Five Riyals and Five Halalas to CMA’s account for the illegal profits in his investment portfolio.
  2. Impose a fine on him in the amount of 510,000 Five Hundred and Ten Thousand Riyals.

Second: The Defendant/ Mohammad bin Abdullah bin Ibrahim Almuqbil

  1. Oblige him to pay 154,241.30 One Hundred and Fifty Four Thousand and Two Hundred and Forty One Riyals and Thirty Halalas to CMA’s account for the illegal profits in his investment portfolio.
  2. Impose a fine on him in the amount of 1,150,000 One Million and One Hundred and Fifty Thousand Riyals.

Third: The Defendant/ Sara bint Rashid bin Ghalib Abo Subai’e

  1. Oblige her to pay 316,941.65 Three Hundred and Sixteen Thousand and Nine Hundred and Forty One Riyals and Sixty Five Halalas to CMA’s account for the illegal profits in her investment portfolio.
  2. Impose a fine on her in the amount of 200,000 Two Hundred Thousand Riyals.

Fourth: The Defendant/ Sameer bin Mohammad bin Mustafa Alheleesi

  1. Oblige him to pay 322,634.40 Three Hundred and Twenty Two Thousand and Six Hundred and Thirty Four Riyals and Forty Halalas to CMA’s account for the illegal profits in his investment portfolio.
  2. Impose a fine on him in the amount of 1,060,000 One Million and Sixty Thousand Riyals.

Fifth: The Defendant/ Ayedh bin Rashid bin Jama’an Al Midawi Alkahtani

  1. Oblige him to pay 248,968.45 Two Hundred and Forty Eight Thousand and Nine Hundred and Sixty Eight Riyals and Forty Five Halalas to CMA’s account for the illegal profits in his investment portfolio.
  2. Impose a fine on him in the amount of 1,850,000 One Million and Eight Hundred and Fifty Thousand Riyals.

Sixth: The Defendant/ Mohammad bin Saeed bin Ahmad Al Breeq Alasmari

  1. Oblige him to pay 298,162.05 Two Hundred and Ninety Eight Thousand and One Hundred and Sixty Two Riyals and Five Halalas to CMA’s account for the illegal profits in his investment portfolio.
  2. Impose a fine on him in the amount of 1,775,000 One Million and Seven Hundred and Seventy Five Thousand Riyals.

Seventh: The Defendant/ Saleh bin Sulaiman bin Mohammad Alhusan

  1. Oblige him to pay 156,088.90 One Hundred and Fifty Six Thousand and Eighty Eight Riyals and Ninety Halalas to CMA’s account for the illegal profits in his investment portfolio.
  2. 2) Impose a fine on him in the amount of 300,000 Three Hundred Thousand Riyals.

Eighth: The Defendant/ Mohammad bin Rasheed bin Abdullah Alrasheed

  1. Oblige him to pay 515,280.60 Five Hundred and Fifteen Thousand and Two Hundred and Eighty Riyals and Sixty Halalas to CMA’s account for the illegal profits in his investment portfolio.
  2. Impose a fine on him in the amount of 200,000 Two Hundred Thousand Riyals.

Ninth: the defendants shall refrain from trading the shares of companies listed in the Saudi Stock Exchange (buying) and from engaging in activities of brokerage, portfolio management and working as investment consultants as well as working in listed companies for three years.

Tenth: oblige a number of investors to pay 1,056,268.40 One Million and Fifty Six Thousand and Two Hundred and Sixty Eight Riyals and Forty Halalas for the illegal profits in their investment portfolios as a result of the violations made by the defendants Mohammad bin Saeed bin Ahmad Al Breeq Alasmari, Ayedh bin Rashid bin Jama’an Al Midawi Alkahtani, and Mohammad bin Abdullah bin Ibrahim Almuqbil

The Capital Market Authority insures its devotion to apply the Capital Market Law and its Implementing Regulations as well as protect the investors from illegal acts.