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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 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 08/12/1438H corresponding to 30/08/2017 regarding the lawsuit filed by the Capital Market Authority against Mohammad bin Mueedh bin Yahya Alqahtani, Ahmad bin Mueedh bin Yahya Alqahtani, Mohammad bin Adel bin Abdullah bin Zeni Aqeel, Hamed bin Abdullah bin Brudy Alzahrani. The decision convicted the defendants of violating Article (49) of the Capital Market Law and Article (2) and (3) of the Market Conduct Regulations when trading the shares of (Saudi Advanced Industries Co., Al-Ahsa Development Co., Alujain Corp., Wafrah for Industry and Development Co., Filing and Packing Materials Manufacturing Co., Sahara Petrochemical Co., Middle East Specialized Cables Co., Tihama Advertising and Public Relations Co., Batic Investments and Logistics Co., Al-Baha Investment and Development Co., Saudi Industrial Export Co., National Agricultural Marketing Co., Tourism Enterprise Co., Tabuk Agricultural Development Co., Ash-Sharqiyah Development Co., Al-Jouf Agricultural Development Co., Malath Cooperative Insurance Co., Allianz Saudi Fransi Cooperative Insurance Co., Salama Cooperative Insurance Co., Arabian Shield Cooperative Insurance Co., SABB Takaful Co., Sanad Cooperative Insurance Co., Saudi Arabian Cooperative Insurance Co., Saudi Indian Company for Cooperative Insurance., Alahli Takaful Co., Al-Ahlia Insurance Co., Allied Cooperative Insurance Group., United Cooperative Assurance Co., Arriyadh Development Co., Dur Hospitality Co., Saudi Real Estate Co., National Gypsum Co., Saudi Automotive Services Co., Aseer Trading, Tourism and Manufacturing Co., Saudi Fisheries Co., Bishah Agricultural Development Co., Jazan Development Co., The Company for Cooperative Insurance., and Walaa Cooperative Insurance Co.) during the period from 09/01/2005G until 25/08/2009G. 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 defendants, detailed as follows:


First defendant: (Mohammad bin Mueedh bin Yahya Alqahtani)

  1.  Imprisonment for a period of one year and six months.
  2.  Imposing a fine on him of (7,500,000) Seven Millions and Five Hundred Thousand Riyals.
  3. Obliging him to pay (96,486,681.95) Ninety Six millions, Four Hundred and Eighty Six Thousand, Six Hundred and Eighty One Riyal and Ninety Five Halalas to the Capital Market Authority’s account for the illegal gains in his investment portfolio and his minor sons investment portfolios.
  4.  Refraining him from trading (buying) the shares of companies listed on the Saudi Stock Exchange, whether in person or on behalf of others, for three years.
  5.  Refraining him from portfolio management, in addition to working as an investment consultant for three years.
  6.  Refraining him from working in listed companies for three years.

 

Second defendant: (Ahmad bin Mueedh bin Yahya Alqahtani)

  1.  Imposing a fine on him of (1,800,000) One Millions and Eight Hundred Thousand Riyals.
  2.  Obliging him to pay (19,137,085.75) Nineteen Millions, One Hundred and Thirty Seven Thousand, Eighty Five Riyals and Seventy Five Halalas to the Capital Market Authority’s account for the illegal gains in his investment portfolio.
  3.  Refraining him from trading (buying) the shares of companies listed on the Saudi Stock Exchange, whether in person or on behalf of others, for three years.
  4.  Refraining him from portfolio management, in addition to working as an investment consultant for three years.
  5.  Refraining him from working in listed companies for three years.

 

Third defendant: (Mohammad bin Adel bin Abdullah bin Zeni Aqeel) 

  1.  Imposing a fine on him of (975,000) Nine Hundred and Seventy Five Thousand Riyals.
  2.  Obliging him to pay (33,932,904) Thirty Three millions, Nine Hundred and Thirty Two Thousand, Nine Hundred and Four Riyals to the Capital Market Authority’s account for the illegal gains in his investment portfolio.
  3. Refraining him from trading (buying) the shares of companies listed on the Saudi Stock Exchange, whether in person or on behalf of others, for three years.
  4. Refraining him from portfolio management, in addition to working as an investment consultant for three years.
  5. Refraining him from working in listed companies for three years.

 

Fourth defendant: (Hamed bin Abdullah bin Brudy Alzahrani) 

  1.  Imposing a fine on him of (900,000) Nine Hundred Thousand Riyals.
  2. Obliging him to pay (9,304,000.50) Nine millions, Three Hundred and Four Thousand and Fifty Halalas to the Capital Market Authority’s account for the illegal gains in his investment portfolio.
  3. Refraining him from trading (buying) the shares of companies listed on the Saudi Stock Exchange, whether in person or on behalf of others, for three years.
  4.  Refraining him from portfolio management, in addition to working as an investment consultant for three years.
  5. Refraining him from working in listed companies for three years.

 

Fifth:  Investor with a national ID number (1028959615)

Obliging her to pay (38,719,429.50) Thirty Eight Millions, Seven Hundred and Nineteen Thousand, Four Hundred and Twenty Nine Riyals and Fifty Halalas to the Capital Market Authority’s account for the illegal gains in her investment portfolio resulted from the unlawful trades committed by the convicted Mohammad bin Mueedh bin Yahya Alqahtani. 

 

Sixth:  Investor with a national ID number (1000258788)

Obliging her to pay (1,652,380.40) One Million, Six Hundred and Fifty Two Thousand, Three Hundred and Eighty Riyals and Forty Halalas to the Capital Market Authority’s account for the illegal gains in her investment portfolios resulted from the unlawful trades committed by the Two convicted Mohammad bin Mueedh bin Yahya Alqahtani and Mohammad bin Adel bin Abdullah bin Zeni Aqeel. 


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)