The
General Secretariat of the Committees for Resolution of Securities Disputes
(CRSD) announces the issuance of the Appeal Committee for the Resolution of
Securities Disputes’ (ACRSD) decision No. (1807/L.S/2019) of 1441 H., dated 16/02/1441
H., corresponding to 15/10/2019, on the case filed by the Public Prosecution (referred
to it by the Capital Market Authority) against: Adel bin Mohammad bin Hamad Almojil,
Fahad bin Ali bin Saad Alraqttan, Ibrahim bin Sa’ad bin Ibrahim Alshuai’r, Sek
Choy Choong, Amaar bin Adnan bin Ibrahim Qudoomy, Deloitte & Touche Company
(Bakr Abu-alkhair & Partners), and Baker bin Abdullah Abu-alkhair.
The
ACRSD's decision concluded with the conviction of the abovementioned individuals
for violating Article (49) of the Capital Market Law, and Article (7) of the
Market Conduct Regulations as they committed practices that created a false and
misleading impression on the value of the security of Mohammad Al Mojil Group Company
during the period after the Company’s IPO. These practices related to misleading
and manipulating in the Company’s financial statements for the years 2008,
2009, 2010 and 2011.
The
ACRSD's decision included the following sanctions:
First:
Defendant - Adel bin Mohammad bin Hamad Almojil, in
absentia:
1. Imposing
a fine on him amounting (SR. 500,000) five hundred thousand Saudi Riyals.
2. Banning
him from managing portfolios and working as an investment advisor for Five years
3. Banning
him from working in companies listed in the Exchange for Five years.
Second: Defendant
- Fahad bin Ali bin Saad Alraqttan:
1. Imposing
a fine on him amounting (SR. 500,000) five hundred thousand Saudi Riyals.
2. Banning
him from managing portfolios and working as an investment advisor for Five years
3. Banning
him from working in companies listed in the Exchange for Five years.
Third: Defendant
- Ibrahim bin Sa’ad bin Ibrahim Alshuai’r:
1. Imposing
a fine on him amounting (SR. 400,000) four hundred thousand Saudi Riyals.
2. Banning
him from managing portfolios and working as an investment advisor for Four
years
3. Banning
him from working in companies listed in the Exchange for Four years.
Fourth: Defendant
- Sek Choy Choong, in absentia:
1. Imposing
a fine upon him amounting (SR. 200,000) two hundred thousand Saudi Riyals.
2. Banning
him from managing portfolios and working as an investment advisor for Three
years
3. Banning
him from working in companies listed in the Exchange for Three years.
Fifth: Defendant
- Amaar bin Adnan bin Ibrahim Qudoomy:
1. Imposing
a fine on him amounting (SR. 400,000) four hundred thousand Saudi Riyals.
2. Banning
him from managing portfolios and working as an investment advisor for Four
years.
3. Banning
him from working in companies listed in the Exchange for Five years.
Sixth: Defendant
- Deloitte & Touche Company (Bakr Abu-alkhair & Partners),
1. Imposing
a fine on the defendant amounting (SR. 500,000) five hundred thousand Saudi
Riyals.
Seventh:
Defendant - Baker bin Abdullah Abu-alkhair :
1. Imposing
a fine on him amounting (SR. 300,000) three hundred thousand Saudi Riyals.
Furthermore,
any person affected by these acts is entitled to file a compensation claim (as
individual or class action) as per the regulatory procedures with the CRSD, provided that such claim is
preceded by a complaint filed with the Capital Market Authority on this regard,
noted that the Authority will announce on its website in case of registering
any class action in order to enable the rest of the investors affected by the
same acts to apply to the CRSD to join the class action.
