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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 02/06/1438H corresponding to 01/03/2017G on the lawsuit filed by the Capital Market Authority against Mohammad Abdullah Ibrahim Almuqbil. The Appeal Committee's decision endorsed the decision of the Committee for the Resolution of Securities Dispute that convicted the defendant of violating Article (49) of the Capital Market Law and Articles (2) and (3) of the Market Conduct Regulations by trading the shares of (SIDC, Tihama, Gulf General, Buruj, Wataniya, Amana Insurance, Maadaniyah, QACO, Arabian Shield, Gulf Union, Walaa Insurance, ACE Arabia Insurance, Al Alamiya, SAIC, Allianz SF, SAICO, Wafa Insurance, Sagr Insurance, Takween, Nama Chemicals, mubarrad, Fitaihi Group, Al Jouf, Salama and SANAD ) during the period from 25/04/2011G until 23/07/2012G. 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 defendant, detailed as follows:

  1. Imposing a fine on him of (6,220,000) Six million, Two Hundred and Twenty Thousand Riyals.
  2. Obliging him to pay (229,653.90) Two Hundred and Twenty Nine Thousand, Six Hundred and Fifty Three Riyals and Ninety Halalas to the Capital Market Authority’s account for the illegal gains in his investment portfolio.
  3. Restraining him from trading (buying) the shares of listed companies for a period of four years, either in person or on behalf of someone else.
  4. Restraining him from managing portfolios and working as an investment advisor for a period of four years.
  5. Restraining him from working in listed companies for a period of four years.

 

The decision also obliged a number of investors to pay (5,296,848.80) Five Million, Two Hundred Ninety Six Thousand, Eight Hundred Forty Eight Riyals and Eighty Halalas
to the Capital Market Authority’s account for the illegal gains in their investment portfolios as a result of violating trade conducted by the convicted Mohammad Abdullah Ibrahim Almuqbil.


 

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.


(To view the security and the date on which the suspected trading occurred, click here)