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An Announcement from the Capital Market Authority regarding the decisions issued by The Appeal Committee for the Resolution of Securities Disputes Convicting 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 18/11/1439H corresponding to 31/07/2018G on the lawsuit filed by the Capital Market Authority against Nawaf bin Mohammad bin Sukhiber Alharbi, Suroor bin Mohammad bin Sukhiber Alharbi, Saud bin Habbas bin Faraj Alharbi, Ahmed bin Sultan bin Mohammad Alasiri, Abdurrahman bin Saud bin Ajlan Alajlan, Khalifah bin Abdullah bin Mohammad Alkhulaifi, Saleh bin Bandar bin Nasser Alharbi, Mohammad bin Hijab bin Abdullah Alharbi, Muraye'a bin Saeed bin Ayedh Al Mirdifah, Ibrahim bin Sulaiman bin Ibrihim Alfunaikh and Abdullah bin Nayef bin Mohammad Alharbi. The verdict concluded with the conviction of the aforementioned for violating Article 49 of the Capital Market Law, and Articles 2 and 3 of the Market Conduct Regulations by trading in the shares of the following companies: (National Metal Manufacturing & Casting Co., Anaam International Holding Group Co., Tabuk Agriculture Development Co., Saudi Advance Industries, Filing & Packing Materials Manufacturing Co., Saudi Public Transport Co., Saudi Automotive Services Co. and National Agriculture Marketing Co.), during the period from 07/11/2010 until 29/05/2011. Their conducts were deemed as manipulation and fraud, beside creating a misleading and untrue impressions of the aforementioned companies' securities. The Committee's decision included the imposition of a number of fines on the defendants, detailed as follows:


First defendant: (Nawaf bin Mohammad bin Sukhiber Alharbi)

  1. Imposing a fine on him amounting (300,000) Three Hundred Thousand Saudi Riyals.
  2. Obliging him to pay (704,138.45) Seven Hundred Four Thousand, One Hundred Thirty Eight Saudi Riyals and Forty Five Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.
  3. Prohibiting him from trading in shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years.

 

Second defendant: (Suroor bin Mohammad bin Sukhiber Alharbi)

  1. Imposing a fine on him amounting (325,000) Three Hundred Twenty Five Thousand Saudi Riyals.
  2. Obliging him to pay (1,367,702.20) One Million, Three Hundred Sixty Seven Thousand, Seven Hundred Two Saudi Riyals and Twenty Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.
  3. Prohibiting him from trading in shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years.

 

Third defendant: (Saud bin Habbas bin Faraj Alharbi) 

  1. Imposing a fine on him amounting (600,000) Six Hundred Thousand Saudi Riyals.
  2. Obliging him to pay (1,004,360.50) One Million, Four Thousand, Three Hundred Sixty Saudi Riyals and Fifty Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.
  3. Prohibiting him from trading in shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years.

 

Fourth defendant: (Ahmed bin Sultan bin Mohammad Alasiri)

  1. Imposing a fine on him amounting (600,000) Six Hundred Thousand Saudi Riyals.
  2. Obliging him to pay (6,617,301.00) Six Million, Six Hundred Seventeen Thousand, Three Hundred One Saudi Riyals to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.
  3. Prohibiting him from trading in shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years.

 


Fifth defendant: (Abdurrahman bin Saud bin Ajlan Alajlan)

  1. Imposing a fine on him amounting (275,000) Two Hundred Seventy Five Thousand Saudi Riyals.
  2. Obliging him to pay (358,949.05) Three Hundred Fifty-Eight Thousand, Nine Hundred Forty Nine Saudi Riyals and Five Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.
  3. Prohibiting him from trading in shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years.

 

Sixth defendant: (Khalifah bin Abdullah bin Mohammad Alkhulaifi)

  1. Imposing a fine on him amounting (525,000) Five Hundred Twenty Five Thousand Saudi Riyals.
  2. Obliging him to pay (3,135,413.45) Three Million, One Hundred Thirty-Five Thousand, Four Hundred Thirteen Saudi Riyals and Forty Five Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.
  3. Prohibiting him from trading in shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years.

 

Seventh defendant: (Saleh bin Bandar bin Nasser Alharbi)

  1. Imposing a fine on him amounting (425,000) Four Hundred Twenty Five Thousand Saudi Riyals.
  2. Obliging him to pay (754,941.45) Seven Hundred Fifty Four Thousand, Nine Hundred Forty One Saudi Riyals and Forty Five Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.
  3. Prohibiting him from trading in shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years.

 

Eighth defendant: (Mohammad bin Hijab bin Abdullah Alharbi)

  1. Imposing a fine on him amounting (375,000) Three Hundred Seventy Five Thousand Saudi Riyals.
  2. Obliging him to pay (367,376.80) Three Hundred Sixty Seven Thousand, Three Hundred Seventy Six Saudi Riyals and Eighty Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.
  3. Prohibiting him from trading in shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years.

 

Ninth defendant: (Muraye'a bin Saeed bin Ayedh Al Mirdifah)

  1.  Imposing a fine on him amounting (100,000) One Hundred Thousand Saudi Riyals.
  2. Obliging him to pay (71,509.55) Seventy One Thousand, Five Hundred Nine Saudi Riyals and Fifty-Five Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.
  3. Prohibiting him from trading in shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years.

 

Tenth defendant: (Ibrahim bin Sulaiman bin Ibrihim Alfunaikh)

  1.  Imposing a fine on him amounting (300,000) Three Hundred Thousand Saudi Riyals.
  2.  Obliging him to pay (1,904,366.80) One Million, Nine Hundred Four Thousand, Three Hundred Sixty Six Saudi Riyals and Eighty Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.
  3. Prohibiting him from trading in shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years.

 

Eleventh defendant: (Abdullah bin Nayef bin Mohammad Alharbi)

  1.  Imposing a fine on him amounting (125,000) One Hundred Twenty Five Thousand Saudi Riyals.
  2.  Prohibiting him from trading in shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years.


Further, the decision included the obligation of a number of investors to pay an amount of (1,501,873.70) one million, five hundred one thousand, eight hundred seventy three Saudi Riyals and seventy Halalas to the Capital Market Authority’s account, for the illegal gains on their investment portfolio, resulted from the trading violations committed by the defendants Ibrahim bin Sulaiman bin Ibrihim Alfunaikh and Abdullah bin Nayef bin Mohammad Alharbi.

The Capital Market Authority affirms on its devotion to implement the Capital Market Law and its Implementing Regulations as well as protecting the investors from illegal practices. Persons affected by these acts can file a compensation claim to the committee as per Article 57 of the Capital Market Law, provided that such claim is proceeded by a complaint filed to the Authority. 

(To view the dates of trading and securities in question, click here)