ع

Published on the same date

An Announcement from the Capital Market Authority regarding the decision issued by The Appeal Committee for the Resolution of Securities Disputes to convict 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 24/10/1436H corresponding to 09/08/2015 regarding the lawsuit filed by the Capital Market Authority against Abdulaziz, Saud, Hamad, Sulaiman, Abdullah, Mohammed, Ahmed, Abdulrahman Sons of Abdulmuhsen Bin Saud Alassaf. The decision upheld the previous decision issued by the Committee for the Resolution of Securities Disputes convicting the defendants for violating Article (49) of the Capital Market Law and Articles (2) and (3) of the Market Conduct Regulations  when they traded the shares of the following companies:  (Tourism Enterprise Co., Alahli Takaful Co., SABB Takaful Co., Saudi United Cooperative Insurance Co., Alkhaleej Training and Education Co., Saudi Industrial Export Co., Al-Ahlia Insurance Co., AXA Cooperative Insurance Co., Weqaya Takaful Insurance and Reinsurance Co. , Arabian Shield Cooperative Insurance Co. ) during the period from 03/12/2008 until 03/10/2009. These practices formed manipulation and fraud and created a misleading and incorrect impression about the mentioned companies. The decision included applying the following fines and sanctions:
First: (Abdulaziz Bin Abdul Muhsen Bin Saud Alassaf)

  1. Oblige him to pay (12,746,543.70) Twelve Million and Seven Hundred and Forty Six Thousand and Five Hundred and Forty Three Riyals and Seventy Halalas to Capital Market Authority’s account for the gains in his investment portfolio that  realized as a consequences of his violations .
  2. Imposition of a fine of (560,000) Five Hundred and Sixty Thousand Riyals for these violations.

Second: (Saud Bin Abdul Muhsen Bin Saud Alassaf)

  1. Oblige him to pay (5,300,609.20) Five Million and Three Hundred Thousand and Six Hundred and Nine Riyals and Twenty Halalas to Capital Market Authority’s account for the gains in his investment portfolio that realized as a consequences of his violations.
  2. Imposition of a fine of (680,000) Six Hundred and Eighty Thousand Riyals for these violations.

Third: (Hamad Bin Abdul Muhsen Bin Saud Alassaf)

  1. Oblige him to pay (1,072,145) One Million and Seventy Two Thousand and One Hundred and Forty Five Riyals to Capital Market Authority’s account for the gains in his investment portfolio that realized as a consequences of his violation. .
  2. Imposition of a fine of (480,000) Four Hundred and Eighty Thousand Riyals for this violation.

Fourth: (Sulaiman Bin Abdul Muhsen Bin Saud Alassaf)

  1. Oblige him to pay (7,551,864) Seven Million and Five Hundred and Fifty One Thousand and Eight Hundred and Sixty Four Riyals to Capital Market Authority’s account for the gains in his investment portfolio that realized as a consequences of his violation.
  2. Imposition of a fine of (420,000) Four Hundred and Twenty Thousand Riyals for this violation.

Fifth: (Abdullah Bin Abdul Muhsen Bin Saud Alassaf)

  1. Oblige him to pay (303,309.95) Three Hundred and Three Thousand and Three Hundred and Nine Riyals and Ninety Five Halalas to Capital Market Authority’s account for the gains in his investment portfolio that realized as a consequences of his violation.
  2. Imposition of a fine of (440,000) Four Hundred and Forty Thousand Riyals for this violation.

Sixth: (Mohammed Bin Abdul Muhsen Bin Saud Alassaf)

  1. Oblige him to pay (8,049,018.85) Eight Million and Forty Nine Thousand and Eighteen Riyals and Eighty Five Halalas to Capital Market Authority’s account for the gains in his investment portfolio that realized as a consequences of his violation .
  2. Imposition of a fine of (540,000) Five Hundred and Forty Thousand Riyals for this violation.

Seventh: (Ahmed Bin Abdul Muhsen Bin Saud Alassaf)

  1. Oblige him to pay (3,601,543.10) Three Million and Six Hundred and One Thousand and Five Hundred and Forty Three Riyals and Ten Halalas to Capital Market Authority’s account for the gains in his investment portfolio that realized as a consequences of his violation.
  2. Imposition of a fine of (400,000) Four Hundred Thousand Riyals for this violation.

Eighth: (Abdulrahman Bin Abdul Muhsen Bin Saud Alassaf)

  1. Oblige him to pay (1,036,219.20) One Million and Thirty Six Thousand and Two Hundred and Nineteen Riyals and Twenty Halalas to Capital Market Authority’s account for the gains in his investment portfolio that realized as a consequences of his violation
  2. Imposition of a fine of (420,000) Four Hundred and Twenty Thousand Riyals for this violation.

 The decision of the committee also included prohibiting the defendants mentioned above from trading the shares of listed companies (buying) and from engaging in activities of brokerage, portfolio management and working as investment consultants  as well as 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.