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. (3002/L.S/2023) of 1445 H., dated 18/02/1445 H., corresponding to 03/09/2023, in the public penal case filed by the Public Prosecution (referred to by the Capital Market Authority (CMA)) against: Omar bin Saleh bin Abdulrahman Alzamel.
The decision concluded with the conviction of the abovementioned individual for violating Article (31) of the Capital Market Law, as well as Article (5) of the Securities Business Regulations, for carrying out a securities business work represented in “Managing", as he managed investment portfolios for a number of investors without obtaining a license from the CMA, in addition to violating Article (49) of the Capital Market Law, as well as Article (2) of the Securities Business Regulations when trading in shares of the following companies: Electrical Industries Co., Saudi Steel Pipe Co., National Petrochemical Co., National Gypsum Co., Saudi Arabian Amiantit Co., Al Kathiri Holding Co., Al-Omran Industrial Trading Co., Saudi Printing and Packaging Co., Al Gassim Investment Holding Co. Wataniya Insurance Co., and the units of AlJazira REIT., during the period between 15/07/2020 and 10/12/2020, as such acts and practices represent fraud and manipulation, and created a false and misleading impression regarding the securities of such mentioned companies and fund. His violation is represented in his act - using his portfolio and the portfolios he manages for a number of investors - of entering purchase orders aiming to influence the price of the securities some of which is linked to sale orders, as well as entering purchase orders without the intention to execute them.
The decision included the imposition of a number of sanctions upon him according to the following:
1. Imposing a fine upon him amounting to (SR. 390,000) three hundred ninety thousand Saudi Riyals.
2. Obliging him to pay the amount of (SR. 35,564.55) three thousand five hundred sixty four Saudi Riyals and fifty five Halalas to the CMA account against the illegal gains achieved in his portfolio.
The decision also included obliging a number of investors to pay to the CMA account the total amount of (SR. 497,733.05) four hundred ninety seven thousand seven hundred thirty three Saudi Riyals and five Halalas for the illegal gains achieved in their investment portfolios that resulted from the illegal trading by the convicted person; Omar bin Saleh bin Abdulrahman Alzamel.
Furthermore, any person affected by the violations of Article (49) of the Capital Market Law 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. Also, in terms of the violations of Article (31) of the Capital Market Law in this case, any person who has entered into an agreement or contract with the convicted person in relation to this violation is entitled to file a claim (as individual or class action) with the CRSD to request the rescission of the agreement or contract and the recovery of any money or other property paid or transferred under the agreement or contract, as per Article (60/b) of the Capital Market Law. Such claims, however, must be 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)
