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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. (3341/L.S/2024) of 1445 H., dated 26/11/1445 H., corresponding to 03/06/2024, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Muhammad bin Mansour bin Awadhallah Alsulami, Khalid bin Awadhallah bin Ahmad Alsulami, Omar bin Rabeh bin Sitr Alsulami, Muhammad bin Awadhallah bin Ahmad Alsulami, Ahmad bin Awadhallah bin Ahmad Alsulami, Nassar bin Awadhallah bin Ahmad Alsulami, Hassan bin Shaker bin Saleh Alsahafi, Mish'al bin Awadhallah bin Ahmad Alsulami, Saud bin Sa'eed bin Aqel Alsulami, Mansour bin Awadhallah bin Ahmad Alsulami, Nasser bin Awadhallah bin Ahmad Alsulami, Zaher Fadl Alsayed Hamida Aldabi and Abdulraouf bin Alsadiq bin Albakr Alqaidi and Awadhallah bin Ahmad bin Ayedh Alsulami.

The decision concluded as follows:

1. The conviction of Khalid bin Awadhallah bin Ahmad Alsulami, being a member of the Board of Directors of Raydan Food Co. (previously known as Raydan Kitchens and Restaurants) "the Company", Omar bin Rabeh bin Sitr Alsulami, being a member of the audit committee in the Company, Muhammad bin Awadhallah bin Ahmad Alsulami, being a member of the Board of Directors of the Company, Hassan bin Shaker bin Saleh Alsahafi, being a member of the Board of Directors of the Company, Mish'al bin Awadhallah bin Ahmad Alsulami, being a member of the Board of Directors of the Company, Saud bin Sa'eed bin Aqel Alsulami, being a member of the Board of Directors of the Company and head of the audit committee at the Company, Mansour bin Awadhallah bin Ahmad Alsulami, being a member of the Board of Directors and the managing director of the Company, Nasser bin Awadhallah bin Ahmad Alsulami, being a member of the Board of Directors of the Company and Vice Chairman of the Board of Directors, Zaher Fadl Alsayed Hamida Aldabi, being a member of the audit committee of the Company, Abdulraouf bin Alsadiq bin Albakr Alqaidi, being a member of the Board of Directors of the Company, and Awadhallah bin Ahmad bin Ayedh Alsulami, being the Chairman of the Board of Directors of the Company, for violating Article (49/a) of the Capital Market Law, by intentionally participating in acts and procedures that created a false and misleading impression regarding the value of the security of the Company in an attempt to form such impression when they did not comply with the International Accounting Standard (IAS) No. (36) “Impairment of Assets" approved by the Saudi Organization for Chartered and Professional Accountants (SOCPA), and approving the consolidated financial statements of the Company for the period ending on 31/12/2018, the period ending on 31/12/2019 and the period ending on 31/12/2020, at a time when they previously know the violations contained in such financial statements, as well as not valuating all investment effects that Raydan Food Co. carried out in Aljonah Company, and failing to prove losses that resulted from the decline in the value of the Company's assets, in addition to not reflecting the result of such acts on the Company's consolidated financial statements, despite the expressed reservation made by the Company's external auditor - who repeated the reservation for three consecutive years - with their goal to influence the Company's share price in the financial years ending on 31/12/2018, 31/12/2019, and 31/12/2020.
2. The conviction of Muhammad bin Mansour bin Awadhallah Alsulami, Khalid bin Awadhallah bin Ahmad Alsulami, Ahmad bin Awadhallah bin Ahmad Alsulami, Nassar bin Awadhallah bin Ahmad Alsulami, Mish'al bin Awadhallah bin Ahmad Alsulami, Mansour bin Awadhallah bin Ahmad Alsulami, Nasser bin Awadhallah bin Ahmad Alsulami, and Awadhallah bin Ahmad bin Ayedh Alsulami, for violating Article (50/a) of the Capital Market Law, and Article (6/a) of the Market Conduct Regulations, when they made during the period between 12/11/2019 and 15/06/2021 transfer transactions of a portion of t​he Company's shares between their portfolios, then conducted trading by selling such shares of a total of (3,464,618) of their owned shares in the Company based on inside information and benefiting from such information prior to its publication and availability to the public on 30/03/2022, which was represented in the Company's not valuating all the effects of the Company's investment in Aljonah Company along with not reflecting the losses that resulted from such investment in the Company's financial statements for the years 2018, 2019 and 2020, despite their knowledge of such losses through the expressed reservations made by the external auditor regarding such issues, during the period from 12/11/2019 (the first sale) until 15/06/2021 (the last sale).

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

        First: Muhammad bin Mansour bin Awadhallah Alsulami:

1. Imposing a fine upon him amounting to (SR. 1,700,000) one million seven hundred thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 1,520,342.22) one million five hundred twenty thousand three hundred forty-two Saudi Riyals and twenty-two Halalas against the avoided losses as a result of the illegal trading on his investment portfolio.
   
   Second: Khalid bin Awadhallah bin Ahmad Alsulami:

1. Imprisonment for a period of (90) ninety days
2. Imposing a fine upon him amounting to (SR. 5,800,000) five million eight hundred thousand Saudi Riyals.
3. Obliging him to pay to the CMA account the amount of (SR. 2,960,463.10) two million nine hundred sixty thousand four hundred sixty-three Saudi Riyals and ten Halalas against the avoided losses as a result of the illegal trading on his investment portfolio.
4. Banning him from working in entities under the supervision of the CMA for Three years.
   
   Third: Omar bin Rabeh bin Sitr Alsulami:

1. Imposing a fine upon him amounting to (SR. 3,500,000) three million five hundred thousand Saudi Riyals.
2. Banning him from working in entities under the supervision of the CMA for Three years.
   
   Forth: Muhammad bin Awadhallah bin Ahmad Alsulami:

1. Imposing a fine upon him amounting to (SR. 100,000) one hundred thousand Saudi Riyals.
2. Banning him from working in entities under the supervision of the CMA for One year.
   
   Fifth: Ahmad bin Awadhallah bin Ahmad Alsulami:

1. Imposing a fine upon him amounting to (SR. 1,700,000) one million seven hundred thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 15,689,106.10) fifteen million six hundred eighty-nine thousand one hundred six Saudi Riyals and ten Halalas against the avoided losses as a result of the illegal trading on his investment portfolio.
   
   Sixth: Nassar bin Awadhallah bin Ahmad Alsulami:

1. Imposing a fine upon him amounting to (SR. 1,700,000) one million seven hundred thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 4,462,370.59) four million four hundred sixty-two thousand three hundred seventy Saudi Riyals and fifty-nine Halalas against the avoided losses as a result of the illegal trading on his investment portfolio.
   
   Seventh: Hassan bin Shaker bin Saleh Alsahafi:

1. Imposing a fine upon him amounting to (SR. 4,000,000) four million Saudi Riyals.
2. Banning him from working in entities under the supervision of the CMA for Two years.
   
   Eighth: Mish'al bin Awadhallah bin Ahmad Alsulami:

1. Imprisonment for a period of (90) ninety days.
2. Imposing a fine upon him amounting to (SR. 6,000,000) six million Saudi Riyals.
3. Obliging him to pay to the CMA account the amount of (SR. 16,359,808.07) sixteen million three hundred fifty-nine thousand eight hundred eight Saudi Riyals and seven Halalas against the avoided losses as a result of the illegal trading on his investment portfolio.
4. Banning him from working in entities under the supervision of the CMA for Two years.
   
   Ninth: Saud bin Sa'eed bin Aqel Alsulami:

1. Imposing a fine upon him amounting to (SR. 4,100,000) four million one hundred thousand Saudi Riyals.
2. Banning him from working in entities under the supervision of the CMA for Three years.
   
   Tenth: Mansour bin Awadhallah bin Ahmad Alsulami:

1. Imprisonment for a period of (90) ninety days.
2. Imposing a fine upon him amounting to (SR. 6,100,000) six million one hundred thousand Saudi Riyals.
3. Obliging him to pay to the CMA account the amount of (SR. 32,421,441.74) thirty-two million four hundred twenty-one thousand four hundred forty-one Saudi Riyals and seventy-four Halalas against the avoided losses as a result of the illegal trading on his investment portfolio.
4. Banning him from working in entities under the supervision of the CMA for Three years.
   
   Eleventh: Nasser bin Awadhallah bin Ahmad Alsulami:

1. Imprisonment for a period of (90) ninety days.
2. Imposing a fine upon him amounting to (SR. 4,400,000) four million four hundred thousand Saudi Riyals.
3. Banning him from working in entities under the supervision of the CMA for Three years.
   
   Twelfth: Zaher Fadl Alsayed Hamida Aldabi:

1. Imposing a fine upon him amounting to (SR. 1,700,000) one million seven hundred thousand Saudi Riyals.
2. Banning him from working in entities under the supervision of the CMA for One year.
   
   Thirteenth: Abdulraouf bin Alsadiq bin Albakr Alqaidi:

1. Imposing a fine upon him amounting to (SR. 4,000,000) four million Saudi Riyals.
2. Banning him from working in entities under the supervision of the CMA for Two years.
   
   Fourteenth: Awadhallah bin Ahmad bin Ayedh Alsulami:

1.  Imposing a fine upon him amounting to (SR. 5,800,000) five million eight hundred thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 4,067,224.86) four million sixty-seven thousand two hundred twenty-four Saudi Riyals and eighty-six Halalas against the avoided losses as a result of the illegal trading on his investment portfolio.
3. Banning him from working in entities under the supervision of the CMA for Three years.

Furthermore, any person affected by such 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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