The Capital Market Authority announces that the Appeal Committee for the Resolution of Securities Disputes has issued its decision dated 25/05/1438H corresponding to 22/02/2017G on the lawsuit filed by the Capital Market Authority against Mohammad Abdullah Mohammad Alnugaidan and Abdulaziz Abdulrahman Othman Alothman. The Appeal Committee's decision endorsed the decision of the Committee for the Resolution of Securities Dispute that convicted the defendants of violating Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations by trading the shares of (Allianz Saudi Fransi, Red Sea Housing Services, Al Akaria, Tihama and Saudi Industrial Exports companies) during the period from 07/01/2012 until 02/05/2012. These practices constituted manipulation and fraud and created a misleading and incorrect impression about the security of the mentioned companies. The Appeal Committee for the Resolution of Securities Disputes decision included imposing a number of penalties on the defendants, detailed as follows:
First: Mohammad Abdullah Mohammad Alnugaidan
- Imposing a fine on him of (90,000) Ninety Thousand Riyals.
- Restraining him from trading (buying) the shares of listed companies on the Saudi Stock Exchange for a period of three months, either in person or on behalf of someone else.
Second: Abdulaziz Abdulrahman Othman Alothman
Imposing a fine on him of (110,000) One Hundred Ten Thousand Riyals
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.
