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. (3155/L.S/2023) of 1445 H., dated 11/06/1445 H., corresponding to 24/12/2023, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Mish'al bin Abdullah bin Abdulmohsen Alkhudari, Naif bin Abdullah bin Abdulmohsen Alali, Abdulaziz bin Abdullah bin Abdulmohsen Alkhudari, Ghada bint Abdullah bin Abdulmohsen Alkhudari, Sami bin Abdullah bin Abdulmohsen Alkhudari, Fawaz bin Abdullah bin Abdulmohsen Alkhudari, Jameel bin Abdullah bin Abdulmohsen Alkhudari, Ali bin Abdullah bin Abdulmohsen Alkhudari, Fawzi bin Abdullah bin Abdulmohsen Alali, and Fawzia bint Abdullah bin Abdulmohsen Alali.

The decision concluded with the following:

1. The conviction of Fawaz bin Abdullah bin Abdulmohsen Alkhudari of violating Article (49/a) of the Capital Market Law and Article (7) of the Market Conduct Regulations, by proving his responsibility for making an incorrect statement in the announcement about Abdullah A. M. Al-Khodari Sons Co. which is a company listed in the Saudi Exchange on 05/06/2018, that included the amendment of the board of directors recommendation for the extraordinary general assembly to increase the Company's capital to the maximum of (SR. 257,000,000) instead of (SR. 208,000,000), as the new shares were granted in return for the settlement of due debts for Abdullah A. M. Al-Khodari Sons for Investment Holding Company, and that the endeavor of Abdullah A. M. Al-Khodari Sons for Investment Holding Company (Major shareholder) to increase its ownership percentage in Abdullah A. M. Al-Khodari Sons Co. (listed in the Exchange) is considered a strong and positive indicator of its desire to provide more types of strategic support to the Company, currently and in the future, hence aiming to affect the price of the security or aiming to urge others to purchase the security of Abdullah A. M. Al-Khodari Sons Co., hence giving a positive impression and affecting the share price of the listed Abdullah A. M. Al-Khodari Sons Co., thus causing it to increase in the following two days of the announcement. Afterwards, the convicted individual, through the portfolio of the Abdullah A. M. Al-Khodari Sons for Investment Holding Company, sold a total number of (2,178,173) Abdullah A. M. Al-Khodari Sons Co. shares owned by Abdullah A. M. Al-Khodari Sons for Investment Holding Company on 06/06/2018 and 07/06/2018, which is not in coherent with the announced goal of the Holding Company to support the Listed Company. In addition to that, it is proven that he is responsible for neglecting to disclose on essential development represented in withdrawing a number of Abdullah A. M. Al-Khodari Sons Co. projects, during the period from 30/05/2017 until 13/01/2020.
2. The conviction of Fawaz bin Abdullah bin Abdulmohsen Alkhudari, Jameel bin Abdullah bin Abdulmohsen Alkhudari and Ali bin Abdullah bin Abdulmohsen Alkhudari of violating Article (50/a) of the Capital Market Law and Article (5/a) of the Market Conduct Regulations, when they disclosed internal information relating to the financial position of Abdullah A. M. Al-Khodari Sons Co. and the possibility of its bankruptcy.
3. The conviction of Mish'al bin Abdullah bin Abdulmohsen Alkhudari, Naif bin Abdullah bin Abdulmohsen Alali, Abdulaziz bin Abdullah bin Abdulmohsen Alkhudari, Ghada bint Abdullah bin Abdulmohsen Alkhudari, Sami bin Abdullah bin Abdulmohsen Alkhudari, Fawaz bin Abdullah bin Abdulmohsen Alkhudari, Fawzi bin Abdullah bin Abdulmohsen Alali, and Fawzia bint Abdullah bin Abdulmohsen Alali of violating Article (50/a) of the Capital Market Law and Article (6/a) of the Market Conduct Regulations, for insider trading based on information disclosed by Fawaz bin Abdullah bin Abdulmohsen Alkhudari, Jameel bin Abdullah bin Abdulmohsen Alkhudari and Ali bin Abdullah bin Abdulmohsen Alkhudari, to benefit from such information prior to its announcement and being available to the public, as they exited the share of Abdullah A. M. Al-Khodari Sons Co. and sold the majority of owned shares during the period between 21/08/2017 and 07/02/2019 after both meetings of board of directors held on 27/07/2017 and 09/08/2017, when both meeting discussed the financial position and the possibility of the Company's bankruptcy, and prior to the Company's announcement of reaching the loss of (198.52%) on 13/02/2019.

The decision included the imposition of a number of sanctions upon them according to the following:

First: Mish'al bin Abdullah bin Abdulmohsen Alkhudari:

1. Imposing a fine upon him amounting to (SR. 20,000) twenty thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 11,036,678.01) eleven million thirty-six thousand six hundred seventy-eight Saudi Riyals and one Halala against the avoided loses as a result of the violations committed in his investment portfolio.
3. Banning him from working in companies, shares of which are traded in the Saudi exchange for One year.
   Second: Naif bin Abdullah bin Abdulmohsen Alali:

1. Imposing a fine upon him amounting to (SR. 20,000) twenty thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 8,482,596.89) eight million four hundred eighty-two thousand five hundred ninety-six Saudi Riyals and eighty-nine Halalas against the avoided loses as a result of the violations committed in his investment portfolio.
3. Banning him from working in companies, shares of which are traded in the Saudi exchange for One year.
   Third: Abdulaziz bin Abdullah bin Abdulmohsen Alkhudari:

1. Imposing a fine upon him amounting to (SR. 20,000) twenty thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 9,226,817.79) nine million two hundred twenty-six thousand eight hundred seventeen Saudi Riyals and seventy-nine Halalas against the avoided loses as a result of the violations committed in his investment portfolio.
3. Banning him from working in companies shares of which are traded in the Saudi exchange for One year.
   Forth: Ghada bint Abdullah bin Abdulmohsen Alkhudari:

1. Imposing a fine upon her amounting to (SR. 20,000) twenty thousand Saudi Riyals.
2. Obliging her to pay to the CMA account the amount of (SR. 1,370,918.10) one million three hundred seventy thousand nine hundred eighteen Saudi Riyals and ten Halalas against the avoided loses as a result of the violations committed in her investment portfolio.
3. Banning her from working in companies, shares of which are traded in the Saudi exchange for One year.
   Fifth: Sami bin Abdullah bin Abdulmohsen Alkhudari:

1. Imposing a fine upon him amounting to (SR. 20,000) twenty thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 12,070,268.61) twelve million seventy thousand two hundred sixty-eight Saudi Riyals and sixty-one Halalas against the avoided loses as a result of the violations committed in his investment portfolio.
3. Banning him from working in companies, shares of which are traded in the Saudi exchange for One year.
   Sixth: Fawaz bin Abdullah bin Abdulmohsen Alkhudari:

1. Sentencing him to imprisonment for a period of Six months.
2. Imposing a fine upon him amounting to (SR. 330,000) three hundred thirty thousand Saudi Riyals.
3. Banning him from working in companies, shares of which are traded in the Saudi exchange for Six years.
   Seventh: Jameel bin Abdullah bin Abdulmohsen Alkhudari:

1. Imposing a fine upon him amounting to (SR. 100,000) one hundred thousand Saudi Riyals.
2. Banning him from working in companies, shares of which are traded in the Saudi exchange for Two years.
   Eighth: Ali bin Abdullah bin Abdulmohsen Alkhudari:

1. Imposing a fine upon him amounting to (SR. 100,000) one hundred thousand Saudi Riyals.
2. Banning him from working in companies shares of which are traded in the Saudi exchange for Two years.  
   Ninth: Fawzi bin Abdullah bin Abdulmohsen Alali:

1. Imposing a fine upon him amounting to (SR. 20,000) twenty thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 8,116,873.04) eight million one hundred sixteen thousand eight hundred seventy-three Saudi Riyals and four Halalas against the avoided loses as a result of the violations committed in his investment portfolio.
3. Banning him from working in companies, shares of which are traded in the Saudi exchange for One year.
   Tenth: Fawzia bint Abdullah bin Abdulmohsen Alali:

1. Imposing a fine upon her amounting to (SR. 20,000) twenty thousand Saudi Riyals.
2. Obliging her to pay to the CMA account the amount of (SR. 187,709.75) one hundred eighty-seven thousand seven hundred nine Saudi Riyals and seventy-five Halalas against the avoided loses as a result of the violations committed in her investment portfolio.
3. Banning her from working in companies, shares of which are traded in the Saudi exchange for One year.  
   The decision also included obliging one investor to pay to the CMA the total amount of (SR. 50,581,879.82) fifty million five hundred eighty-one thousand eight hundred seventy-nine Saudi Riyals and eighty-two Halalas against the avoided loses as a result of the violations committed in its investment portfolio performed by the convicted person; Fawaz bin Abdullah bin Abdulmohsen Alkhudari.
   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.
    
   

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