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An announcement by the Capital Market Authority regarding the issuance of the final decision by The Appeal Committee for the Resolution of Securities Conflicts (ACRSC) to convict the violators of the Capital Market Law and its implementing regulations

CMA announces a final decision by The Appeal Committee for the Resolution of Securities Conflicts (ACRSC) on 4-11-1431H/12-10-2010 regarding the case raised by CMA against Jar Allah bin Mohammad bin Nasser Al Jar Allah, Saeed bin Mohammad bin Nasser Al Jar Allah, Fayez bin Saleh bin Abdullah Bin Mahfouz, Nabeel Bin Ma’eedh bin Yahya Al Kahtani, Abdulrahman bin Abdulmohsen bin Suleiman Al Mi’jel, the investor Mohammad bin Nasser Al Jar Allah and the investor Nasser bin Mohammad bin Nasser Al Jar Allah during their trading of  Albaha  for Development and Investment Co (ABDICO) share during the period from 23-7-2006 until 27-9-2006. The final decision  affirmed (CRSD)'s decision to convict the accused with the violations they were charged with and imposition penalties and sanctions according to the following:

 

First: Jar Allah bin Mohammad Al Jar Allah’s violation of Article 49 of the Capital Market Law and Articles 2 and 3 of the Market Conduct Regulations were proven as well as his violation of (A/1-2) of Article 30 of the Listing Rules for his ownership and his disposal of the percentage of the shares he owns in Albaha for Development and Investment Co (ABDICO). The imposition of the following penalties and sanctions is in order:

1-         Oblige him to pay all the revenue, as a result of these violations, to the CMA account. The total amount is (28,923,826/57) Twenty Eight Million, Nine Hundred and Twenty Three Thousand, Eight Hundred and Twenty Six Riyals and Fifty Seven Halalas.  

2-         Imposition of a penalty of (300,000) Three Hundred Thousand Riyals as a result of his violations.

3-         Oblige him to refrain from trading by buying the shares of the listed companies in the stock market for seven years.

4-         Prevent him from working in the companies that have shares traded in the stock market for seven years.

5-                  Prevent him from engaging in brokerage and portfolio management as well as working as an investment consultant for seven years.  

 

 

Second: Saeed bin Mohammad bin Nasser Al Jar Allah and Fayez bin Saleh bin Abdullah Bin Mahfouz and Nabeel Bin Ma’eedh bin Yahya Al Kahtani’s violation of Article 49 of the Capital Market Law and Articles 2 and 3 of the Market conduct Regulations was proven. The imposition of the following penalties and sanctions is in order:

1-                   Oblige Saeed bin Mohammad bin Nasser Al Jar Allah to pay the revenues he gained as a result of these violations to CMA’s account. The total amount is (2,119,935) Two Million, One Hundred and Nineteen Thousand, Nine Hundred and Thirty Five Riyals.

2-                  Oblige  Nabeel Bin Ma’eedh bin Yahya Al Kahtani to pay the revenues he gained as a result of these violations to CMA’s account. The total amount is (24,896,213/23) Twenty Four Million, Eight Hundred and Ninety Six Thousand, Two Hundred and Thirteen and Twenty Three Halalas.

3-                   Imposition of a penalty of (100.000) One Hundred Thousand Riyals on both of them as a result of their violations.

4-                  Oblige each one of them to refrain from trading by buying shares of the listed companies in the stock market for five years.

5-                  Prevent each one of them from working in the companies that have shares traded in the stock market for five years.

6-                  Prevent each one of them from engaging in brokerage and portfolio management as well as working as an investment consultant for five years.  

 

Third: The collaboration of Abdulrahman bin Abdulmohsen bin Suleiman Al Mi’jel  with Fayez bin Saleh bin Abdullah Bin Mahfouz in violating Article 49 of the Capital Market Law and Articles (A/2,3,11) of the Market Conduct Regulations was proven. The imposition of the following penalties and sanctions is in order:

1-                  Imposition of a penalty of (200,000) Two Hundred Thousand Riyals for the two violations they committed.

2-                   Oblige him to refrain from trading by buying shares of the listed companies in the stock market for five years.

3-                  Prevent him from working in the companies that have shares traded in the stock market for five years.

4-                  Prevent him from engaging in brokerage and portfolio management as well as working as an investment consultant for seven years.  

 

Fourth: Jar Allah bin Mohammad Al Jar Allah, Saeed bin Mohammad Al Jar Allah and Fayez bin Saleh bin Mahfouz were all proven to have exercised the violating acts in the jurisdiction in which the lawsuit is brought on their client’s portfolio who is the investor Mohammad bin Nasser bin Jar Allah Al Jar Allah. The investor was obliged to pay the revenues gained as a result of the violating acts done by his representatives to CMA’s account. The total amount was (38,293,835)  thirty eight Million, Two Hundred Ninety Three Thousand and Eight Hundred Thirty Five Riyals.

 

Fifth:  Jar Allah bin Mohammad Al Jar Allah was proven to have exercised the violating acts in the case on his client’s portfolio who is the investor Nasser bin Mohammad bin Nasser Al Jar Allah. The investor was obliged to pay the revenues gained as a result of the violating acts done by his  representative to CMA’s account. The total amount was (5,200,288/30) Five Million, Two Hundred Thousand and Two Hundred and Eighty Eight Riyals and Thirty Halalas.

 

By that, CMA insures its devotion to apply the Capital Market Law and its Implementing Regulations as well as protect the investors from illegal acts.