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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 Convicting 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 14/08/1438H corresponding to 10/05/2017G on the lawsuit filed by the Bureau of Investigation and Public Prosecution against Adel Khaled Abdullatif Almkainzy (which was referred from the Capital Market Authority). The decision convicted the defendant of violating Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations when trading the shares of (Al Sorayai Trading and Industrial Group, United Wire Factories Co., Alujain Corp., Rabigh Refining and Petrochemical Co., Arriyadh Development Co., National Agricultural Marketing Co., Jabal Omar Development Co., Al Gassim Investment Holding Co., Tabuk Agricultural Development Co., Saudi Fisheries Co., Malath Cooperative Insurance Co., Salama Cooperative Insurance Co., Gulf Union Cooperative Insurance Co., Trade Union Cooperative Insurance Co., Saudi Re for Cooperative Reinsurance Co. and Bupa Arabia for Cooperative Insurance Co.) during the period from 05/06/2012G until 29/04/2013G. These practices constituted manipulation and fraud and created a misleading and incorrect impression about the security of the mentioned companies. The Appeal Committee decision included imposing a number of penalties on the defendant, detailed as follows:

  1.  Imposing a fine on him of (230,000) Two Hundred and Thirty Thousand Riyals for these violations.
  2.  Obliging him to pay (47,825.55) Forty Seven Thousand, Eight Hundred and Twenty Five Riyals and Fifty Five Halalas to the Capital Market Authority’s account for the illegal gains in his investment portfolio.

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.

(the security and the date on which the suspected trading occurred)