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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 a violator 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 21/01/1438H corresponding to 22/10/2016 regarding the lawsuit filed by the Capital Market Authority against Mohammed bin Hussain Gargor. The decision convicted the defendant for violating Article (49) of the Capital Market Law and Articles (2) and (3) of the Market Conduct Regulations for trading the shares of the following companies: (Salama Cooperative Insurance Co., Allied Cooperative Insurance Group, Buruj Cooperative Insurance Co.) during the period from 03/01/2012 until 30/04/2013. These practices formed manipulation and fraud and created a misleading and incorrect impression about the mentioned companies. The following fine and sanctions shall be applied: 

  1. Oblige him to pay (1,023,248.65) One Million and Twenty Three Thousand and Tow Hundred and forty Eight Riyals and Sixty Five Halalas to Capital Market Authority’s account for the illegal gains in his investment portfolio.
  2. Imposition of a fine of (680,000) Six Hundred and Eighty Thousand Riyals.
  3. He shall refrain from trading (buying) the shares of companies listed on the Saudi Stock Exchange, whether in person or on behalf on someone else for Three years.
  4. He shall refrain from portfolio management, in addition to working as an investment consultant for three years.
  5. He shall refrain from working in listed companies for three years. 

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, and whoever is affected by these acts can file a suit for compensation to the committee as per Article (57) of the Capital Market Law, this must be preceded by a complaint filed to the CMA.

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