Announcement from the General Secretariat of CRSD Regarding the Issuance of the ACRSD Decision No. (2061/L.S/2020) of 1442 H. Convicting Violator of the Capital Market Law and its Implementing Regulations
The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Appeal Committee for Resolution of Securities Disputes' (ACRSD) final decision No. (2061/L.S/2020) of 1442 H., dated 03/04/1442 H., corresponding to 18/11/2020 G., in the case filed by the Public Prosecution (referred to by the Capital Market Authority (CMA)) against: Ahmad bin Abdullah bin Abdulrahman Aljo'aithen.
The decision concluded with the conviction of the abovementioned individual for violating Article (49) of the Capital Market Law, as well as Article (2) of the Market Conduct Regulations, when trading the shares of the following companies: Arabian Cement Co., Makkah Construction and Development Co., Jabal Omar Development Co., Jazan Energy and Development Co., Saudi Arabian Cooperative Insurance Co., Bawan Co., Saudi Research and Marketing Group, Buruj Cooperative Insurance Co., Saudi Arabia Refineries Co., and Emaar the Economic City Co. during the period between 05/04/2016 G. and 11/10/2016 G. Such acts and practices constituted manipulation and fraud, and created a false and misleading impression regarding the security of the abovementioned companies.
The decision included the imposition of a number of sanctions upon him, according to the following:
- Imposing a fine upon him amounting to (SR. 1,890,000) one million eight hundred ninety thousand Saudi Riyals.
- Obliging him to pay to the CMA account the amount of (SR. 3,505,801.84) three million five hundred five thousand eight hundred one Saudi Riyals and eighty-four Halalas, against the illegal gains achieved in his two investment portfolios as a result of these violations.
- Banning him from trading by purchasing shares of companies listed on the Exchange for his own account or as agent of others for a period of one year, excluding trading through investment funds with Authorised Persons.
- Banning him from managing portfolios for a period of one year.
The decision also included obliging a number of investors to pay to the CMA account an amount totaling (SR. 7,500,283.64) seven million five hundred thousand two hundred eighty three Saudi Riyals and sixty-four Halalas, against the illegal gains achieved in their investment portfolios as a result of trading violations committed by the convicted person Ahmad bin Abdullah bin Abdulrahman Aljo'aithen.
Furthermore, any person affected by these acts is entitled to file a compensation claim with the CRSD pursuant to Article (57) of the Capital Market Law, provided that such claim is preceded by a complaint filed with the CMA on this regard. via the following link: (click here)
(To view the dates of trading and securities in relation to the violations, click here)
