The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Appeal Committee for the Resolution of Securities Disputes' (ACRSD) final decision No. (2488/L.S/2022) of 1443 H., dated 19/09/1443 H., corresponding to 20/04/2022 G., in the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Ahmad bin Shallah bin Muneer Alharbi.
The decision concluded with the conviction of the abovementioned individual for violating Article (49) of the Capital Market Law, as well as Article (8) of the Market Conduct Regulations, when he purchased shares of a number of listed companies through his investment portfolio, and circulated them using his Twitter account by the username (Sa'ed Alnasab) with the intent of urging others to buy or sell in the shares of those companies; consequently entering sell orders after the share price was affected by a rise.
The companies' shares are: Basic Chemical Industries Co., Naseej International Trading Co., Seera Group Holding, Alujain Holding Corp., Saudi Paper Manufacturing Co., Al-Babtain Power and Telecommunication Co., Zahrat Al Waha for Trading Co., Al Kathiri Holding Co., Eastern Province Cement Co., United Electronics Co., Middle East Healthcare Co., Dur Hospitality Co., Lazurde Company for Jewelry, Saudi Automotive Services Co., Fitaihi Holding Group, Alandalus Property Co., Malath Cooperative Insurance Co., Saudi Arabian Cooperative Insurance Co., Al-Ahlia Insurance Co., and Arabia Insurance Cooperative Co., during the period between 26/08/2020G. until 28/09/2020 G.
Such acts and practices constituted manipulation and fraud, and created a false and misleading impression regarding the securities 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. 120,000) one hundred twenty thousand Saudi Riyals.
- Obliging him to pay to the CMA account the amount of (SR. 173,515.68) one hundred seventy-three thousand five hundred fifteen Saudi Riyals and sixty-eight Halalas against the illegal gains achieved in his investment portfolio.
Furthermore, any person affected by these violations in this case is entitled to file a compensation claim (as individual or class action) with the CRSD for the damage he/she suffered from due to these violations, provided that such claim is preceded by a complaint filed with the CMA in this regard, via the following link: (File Complaint)
However, the GS-CRSD will announce to the public on its website in case of registering any class action in order to enable the rest of investors affected by such violations to apply to the CRSD to join the class action.
(To view the dates of trading and securities in relation to these violations, click here)
