13 violaters fined SAR 42.9M on capital market law violations

The Appeal Committee for Resolution of Securities Disputes (ACRSD) convicted 13 investors for breaches of capital market laws, ordering them and others to pay SAR 42.9 million in total.

 

ACRSD fined 13 investors SAR 17 million for manipulating stock prices through specific buy orders linked to selling orders while trading shares of various listed companies. They and additional investors are also required to pay SAR 25.9 million for illicit gains on their investment portfolios,  the Capital Market Authority (CMA) said in a statement.

 

ACRSD's final decision convicted the following individuals: Hmoud Aldhiyab, Nouf Aljeraiwi, Ibrahim Aljeraiwi, Mesha'el Alharbi, Yazeed Almahmoud, Sahar Musalam, Turki Aldakhil, Muhammad Altamimi, Noura Aljeraiwi, Abdulrahman Aljeraiwi, Abdullah Alshethri, Khaled Aljeraiwi, and Musa'ed bin Almunifi. The decision found them guilty of violating Article 49 of the Capital Market Law and Article 2 of the Market Conduct Regulations.

 

The violations involved placing buy orders with the intent to influence stock prices linked to corresponding sell orders during their trading in the shares of the following companies Wafrah for Industry and Development Co., Tihama Advertising and Public Relations Co., Jazan Development and Investment Co., Allianz Saudi Fransi Cooperative Insurance Co., Gulf Union Alahlia Cooperative Insurance Co., Allied Cooperative Insurance Group, Arabia Insurance Cooperative Co., United Cooperative Assurance Co., Al-Rajhi Company for Cooperative Insurance, Wataniya Insurance Co., and Al-Omran Industrial Trading Co. These actions were carried out from May 4, 2020, to May 20, 2021, through their investment portfolios and those of other investors managed by Yazid bin Abdullah bin Abdulrahman Al-Mahmoud and Khaled bin Ibrahim bin Abdullah Al-Jeriwi, creating a false and misleading impression regarding the securities of the aforementioned companies.

 

CMA clarified that the final decision from the Securities Disputes Appeals Committee came from coordination and cooperation with relevant entities. This followed a public criminal lawsuit filed by the Public Prosecution, referred by the Capital Market Authority against violators of the market regulations and rules.

 

The authority continuously monitors and controls violating behaviors, completing necessary actions to impose deterrent penalties. This is part of its effort to foster an attractive and safe investment environment free from unfair or fraudulent practices.

 

Victims of the mentioned violations can file individual or collective lawsuits against the offenders for compensation through the Dispute Resolution Committee, after filing a complaint with the Capital Market Authority. The General Secretariat of the Dispute Committees will announce on its website when a collective lawsuit is registered, allowing others affected to join, CMA added.

 

The General Secretariat of the Dispute Committees in Securities Disputes has publicly disclosed the identities of the violators on its website following the confirmation of violations and the issuance of the final decision by the Appeals Committee.