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. (2946/L.S/2023) of 1445 H., dated 01/01/1445 H., corresponding to 19/07/2023, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Fahad bin Abdulaziz bin Abdullah Albanyan.
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 in the shares of the following companies: Naseej International Trading Co., Saudi Cable Co., National Metal Manufacturing and Casting Co., Tihama Advertising and Public Relations Co., Red Sea International Co., Saudi Fisheries Co., Ash-Sharqiyah Development Co., Allianz Saudi Fransi Cooperative Insurance Co., Abdullah Saad Mohammed Abo Moati for Bookstores Co., Al-Omran Industrial Trading Co., Raydan Food Co. and Sumou Real Estate Co., during the period between 15/01/2019 and 25/11/2020. Such acts and practices represent fraud and manipulation, and created a false and misleading impression regarding the security of the abovementioned companies. His violation is represented in his act through his portfolio of entering purchase orders aiming to affect the share price of the abovementioned companies, and entering purchase orders aiming to achieve high bid closing price.
The decision included the imposition of a number of sanctions upon him according to the following:
- Imposing a fine upon him amounting to (SR. 2,150,000) two million one hundred fifty thousand Saudi Riyals.
- Obliging him to pay to the CMA account the amount of (SR. 55,042,011.68) fifty-five million forty-two thousand eleven Saudi Riyals and sixty-eight Halalas, against the illegal gains achieved in his portfolios.
- Banning him from trading through purchase of shares in companies listed in the Saudi Exchange for himself or on behalf of others for a period of One year.
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 on 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 the violations, click here
