The Capital Market Authority (CMA) announces the issuance of the Appeal Committee for Resolution of Securities Disputes' (ACRSD) final decision convicting 14 Members of the Board of Directors and employees of Raydan Food Co. – previously known as Raydan Kitchens and Restaurants – "the Company", including the Chairman of the Board of Directors, for violating Article  (49/a) and Article  (50/a) of the Capital Market Law and Article  (6/a) of the Market Conduct Regulations and obligating them to pay more than SAR 77 million against avoided losses and fining them SAR 50.6 million.

In Addition, the ACRSD's decision convicted the Chairman of the Board of Directors of the Company, the Vice Chairman, the Managing Director, along with six other Board members, including the Head of the Audit Committee at the Company and two committee members, for violating Article (49/a) of the Capital Market Law. Further, the Chairman, Vice Chairman, Managing Director, two Board Members and others were convicted for violating Article (50/a) of the Capital Market Law and Article (6/a) of the Market Conduct Regulations.

According to the ACRSD, the decision was issued convicting each of Khalid bin Awadhallah bin Ahmad Alsulami, being a member of the Board of Directors of Raydan Food Co. (previously known as Raydan Kitchens and Restaurants) "the Company", Omar bin Rabeh bin Sitr Alsulami, being a member of the audit committee in the Company, Muhammad bin Awadhallah bin Ahmad Alsulami, being a member of the Board of Directors of the Company, Hassan bin Shaker bin Saleh Alsahafi, being a member of the Board of Directors of the Company, Mish'al bin Awadhallah bin Ahmad Alsulami, being a member of the Board of Directors of the Company, Saud bin Sa'eed bin Aqel Alsulami, being a member of the Board of Directors of the Company and head of the audit committee at the Company, Mansour bin Awadhallah bin Ahmad Alsulami, being a member of the Board of Directors and the managing director of the Company, Nasser bin Awadhallah bin Ahmad Alsulami, being a member of the Board of Directors of the Company and Vice Chairman of the Board of Directors, Zaher Fadl Alsayed Hamida Aldabi, being a member of the audit committee of the Company, Abdulraouf bin Alsadiq bin Albakr Alqaidi, being a member of the Board of Directors of the Company, and Awadhallah bin Ahmad bin Ayedh Alsulami, being the Chairman of the Board of Directors of the Company, for violating Article (49/a) of the Capital Market Law, by intentionally participating in acts and procedures that created a false and misleading impression regarding the value of the security of the Company in an attempt to form such impression when they did not comply with the International Accounting Standard (IAS) No. (36) “Impairment of Assets" approved by the Saudi Organization for Chartered and Professional Accountants (SOCPA), and approving the consolidated financial statements of the Company for the period ending on 31/12/2018, the period ending on 31/12/2019 and the period ending on 31/12/2020, at a time when they previously know the violations contained in such financial statements, as well as not valuating all investment effects that Raydan Food Co. carried out in Aljonah Company, and failing to prove losses that resulted from the impairment of the Company's assets, in addition to not reflecting the result of such acts on the Company's consolidated financial statements, despite the expressed reservation made by the Company's external auditor - who repeated the reservation for three consecutive years - with their goal to influence the Company's share price in the financial years ending on 31/12/2018, 31/12/2019, and 31/12/2020.

Also, the conviction of Muhammad bin Mansour bin Awadhallah Alsulami, Khalid bin Awadhallah bin Ahmad Alsulami, Ahmad bin Awadhallah bin Ahmad Alsulami, Nassar bin Awadhallah bin Ahmad Alsulami, Mish'al bin Awadhallah bin Ahmad Alsulami, Mansour bin Awadhallah bin Ahmad Alsulami, Nasser bin Awadhallah bin Ahmad Alsulami, and Awadhallah bin Ahmad bin Ayedh Alsulami, for violating Article (50/a) of the Capital Market Law, and Article (6/a) of the Market Conduct Regulations, when they made during the period between 12/11/2019 until 15/06/2021 transfer transactions of a portion of the Company's shares between their portfolios. They then proceeded to sell a total of (3,464,618) of their owned shares in the Company based on inside information and benefiting from such information prior to its publication and availability to the public on 30/03/2022, which was represented in the Company's not valuating all the effects of the Company's investment in Aljonah Company along with not reflecting the losses that resulted from such investment in the Company's financial statements for the years 2018, 2019 and 2020, despite their knowledge of such losses through the expressed reservations made by the external auditor regarding such issues, during the period from 12/11/2019 (the first sale) until 15/06/2021 (the last sale).

In addition to the financial fines, the ACRSD sentenced four of the convicted individuals to 90 days in prison and ordered seven of the convicted individuals to pay SAR 77.48 million against avoided losses as a result of the illegal trading on their investment portfolios. The decision also included banning 11 of the convicted individuals from working in entities subject to the CMA's supervision for periods ranging from one to three years.

The CMA stated that the ACRSD's decision came as a result of joint coordination and cooperation between the CMA and relevant concerned authorities, and in light of the public penal lawsuit filed by the Public Prosecution, referred to it by the CMA, against the investors for violating the Capital Market Law.

The CMA stresses the importance of investors' confidence in the capital market for its growth and prosperity. The CMA continuously monitors any violating behaviors, identifies the perpetrators, and processes the necessary procedures to impose deterrent penalties against them, in order to enhance the CMA's efforts aimed at creating an attractive investment environment for all categories of investors and safe from unfair or unsound practices or that involve fraud, cheating, deception, misleading or manipulation.

Furthermore, any person affected by these violations, in this case, is entitled to file a compensation claim (as individual or class action) against those convicted persons with the Committee for Resolution of Securities Disputes (CRSD) for the damage he/she suffered from these violations, provided that such claim is preceded by a complaint filed with the CMA on this regard, via the following link: (File Complaint). The General Secretariat of the Committee for Resolution of Securities Disputes (GS-CRSD) will announce to the public on its website in case of registering any class action in order to enable the rest of investors affected by such violations to apply to the CRSD to join the class action.

It is worth noting that the GS-CRSD announced to the public on its website the identity of the violators after the violations and penalties were proven and the final decision was issued by the ACRSD against everyone who violated the capital market laws and implementing regulations. It can be viewed through the following link:

Announcement from the General Secretariat of the Committees for Resolution of Securities Disputes Click Here ​

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