The Saudi Capital Market Authority’s appeals panel has upheld a decision of the Committee for the Resolution of Securities Disputes (CRSD) to sentence Mohammad Al Mojil Group founder, Mohammed Bin Hamad Al-Mojil and his son Adel Al-Mojil to five years in prison for irregularities related to the company’s initial public offering (IPO).
In addition, the appeals court also upheld the SAR 300,000 fines levied on both of them, with Mohammed Al-Mojil ordered to pay SAR 1.62 billion to the market regulator as the illegal profit gained as a result of the difference between the offering price and the stock’s value.
Mohammed Al-Mojil and his son were also prohibited from working in Tadawul-listed firms for ten years and seven years, respectively.
A precautionary attachment was imposed on Al-Mojil’s assets, while he and his son will continue to see travel bans until the penalties are paid to the authority.
On 16 June, 2016, the CRSD, part of Saudi Arabia’s capital market regulator, had imposed prison sentences on three MMG executives. The accused had appealed the decision before the appeals panel.
Fahed Al-Raqtan, who served as the group CEO, was fined SAR 300,000 for the same violations and sentenced to a three-year imprisonment. He was also banned from working in Saudi-listed firms for seven years.
Other offenders, namely Jassim Al-Ansari, Abdullah Al-Huraiqi, Zaki bin Mansour and Ahmed Al-Suwaidan were also fined SAR 300,000 each and prohibited from working in listed companies for five years each.
Meanwhile, Deloitte & Touche Bakr Abulkhair and Bakr Abulkhair were barred by Saudi Arabia’s market regulator from providing audit services in the kingdom for two years commencing from June 1, 2015. The local unit of New York accountancy firm and its chairman were also slapped with a fine of SAR 300,000 each.
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