The Capital Market Authority announces that the Appeal Committee for the Resolution of Securities Disputes has issued its decision dated 07/06/1437H corresponding to 16/03/2016, regarding the lawsuit filed by the Capital Market Authority against Mohammad bin Mueedh bin Yahya Alkahtani, Abdulrasheed bin Is'haaq bin Abdullah Aldahlawi, Hasan bin Ahmad bin Mohammad Asiri, Mohammad bin Adel bin Abdullah bin Zene Aqeel, Ali bin Saif bin Ali Alassaf, Mushabbab bin Saleh bin Abdullah Alkahtani, and Saleh bin Ali bin Ower Alower. The decision upheld the previous decision issued by the Committee for the Resolution of Securities Disputes convicting the defendant 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: (United Cooperative Assurance Co., Saudi Arabian Cooperative Insurance Co., Gulf Union Cooperative Insurance Co., Arabia Insurance Cooperative Co. , Al-Ahlia Insurance Co.)
during the period from 03/04/2010 until 14/06/2010. 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/ Mohammad bin Mueedh bin Yahya Alkahtani
- Impose a fine on him in the amount of 435,000 Four Hundred and Thirty Five Thousand Riyals.
- Oblige him to pay 497,698.55 Four Hundred and Ninety Seven Thousand and Six Hundred and Ninety Eight Riyals and Fifty Five Halalas to CMA’s account for the illegal profits in his investment portfolio.
Second: The Defendant/ Abdulrasheed bin Is'haaq bin Abdullah Aldahlawi
Oblige him to pay 90,000 Ninety Thousand Riyals.
Third: The Defendant/ Hasan bin Ahmad bin Mohammad Asiri
- Impose a fine on him in the amount of 60,000 Sixty Thousand Riyals.
- Oblige him to pay 3,711.25 Three Thousand and Seven Hundred and Eleven Riyals and Twenty Five Halalas to CMA’s account for the illegal profits in his investment portfolio.
Fourth: The Defendant/ Mohammad bin Adel bin Abdullah bin Zene Aqeel
Oblige him to pay 165,000 One Hundred and Sixty Five Thousand Riyals
Fifth: The Defendant/ Ali bin Saif bin Ali Alassaf
- 1) Impose a fine on him in the amount of 60,000 Sixty Thousand Riyals.
- 2) Oblige him to pay 6,000 Six Thousand Riyals to CMA’s account for the illegal profits in his investment portfolio.
Sixth: The Defendant/ Mushabbab bin Saleh bin Abdullah Alkahtani
Oblige him to pay 45,000 Forty Five Thousand Riyals.
Seventh: The Defendant/ Saleh bin Ali bin Ower Alower
- Impose a fine on him in the amount of 60,000 Sixty Thousand Riyals.
- Oblige him to pay 50,474.50 Fifty Thousand and Four Hundred and Seventy Four Riyals and Fifty Halalas to CMA’s account for the illegal profits in his investment portfolio.
Eighth: The defendants Mohammad bin Mueedh bin Yahya Alkahtani and Mohammad bin Adel bin Abdullah bin Zene Aqeel 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. As for the rest of the defendants, they shall refrain from working in the above for one year.
Nineth: oblige a number of investors to pay 360,865.75 Three Hundred and Sixty Thousand and Eight Hundred and Sixty Five Riyals and Seventy Five Halalas for the illegal profits in their investment portfolios as a result of the violations made by the defendants Mohammad bin Mueedh bin Yahya Alkahtani, Ali bin Saif bin Ali Alassaf, and Mohammad bin Adel bin Abdullah bin Zene Aqeel.
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.
