The General Secretariat of Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Appeal Committee for Resolution of Securities Disputes (ACRSD) decision No. (1665/L.S/2019) of 1440H. dated 26/06/1440H., corresponding to 03/03/2019, in the suit filed by the Public Prosecution against Saud bin Ali bin Muhammad Alhasan and Sari bin Ahmad bin Abdullah Alsalim.

The ACRSD decision text concluded with convicting the aforementioned individuals for violating Article 49 of the Capital Market Law, Article 2 of the Market Conduct Regulations, when trading in shares of the following companies:

Banque Saudi Fransi, Saudi British Bank, Al-Rajhi Bank, Saudi Arabian Mining Co., Savola Group, Yanbu National Petrochemical Co., Southern Province Cement Co., National Shipping Company of Saudi Arabia, Jabal Omar Development Co., and Etihad Etisalat Co., during the period from 06/10/2013G until 09/10/2013G.

These acts and practices were manipulative and fraudulent and created a false and misleading impression in regards to the security of the abovementioned companies.

The decision of the ACRSD included upholding the decision of the Committee for Resolution of Securities Disputes (CRSD) to impose a number of sanctions on the violators, as per the following details:

First: Saud bin Ali bin Muhammad Alhasan

1. Imposing a fine on him amounting (220,000) Two Hundred Twenty Thousand Saudi Riyals.
2. Obliging him to pay (96,612.35) Ninety Six Thousand, Six Hundred Twelve Saudi Riyals and Thirty Five Halalas to the Capital Market Authority's account, for the illegal gains resulted from such violations.  
3. Prohibiting  him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others,  for a period of three months, excluded from that, trading through investment funds by the Authorized Persons.

Second: Sari bin Ahmad bin Abdullah Alsalim

1. Imposing a fine on him amounting (380,000) Three Hundred Eighty Thousand Saudi Riyals.
2. Obliging him to pay (122,111.15) One Hundred Twenty Two Thousand, One Hundred Eleven Saudi Riyals and Fifteen Halalas to the Capital Market Authority's account, for the illegal gains resulted from such violations.
3. Prohibiting  him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others,  for a period of three months, excluded from that, trading through investment funds by the Authorized Persons.

The decision also included obliging one investor to pay to the CMA account the amount of (66,650) Sixty Six thousand, Six Hundred fifty Saudi Riyals  against the illegal gains achieved through his investment portfolio that resulted from such violations committed by the convicted person Saud bin Ali bin Muhammad Alhasan.

Any person affected by these acts may file a compensation suit to the Committee as per Article 57 of the Capital Market Law, provided that such suit is preceded by a complaint filed with the Authority. 

(To view the dates of trading and the securities in relation to the violations, click here)