​The General Secretariat of Committees for Resolution of Securities Disputes announces the issuance of the Appeal Committee for the Resolution of Securities Disputes' resolution number 1555/L.S/2018 of 1440H dated 17/02/1440H corresponding to 26/10/2018G on the lawsuit filed by the Capital Market Authority against; Sharaf bin Mohamed bin Suhaim Alhariri Alzahrani, Mohamed bin Abdullah bin Ibraheem Almuqbil, Ghormallah bin Raddad bin Saeed Alzahrani, Sameer bin Mohamed bin Mustafa Alhulaisi, Mohamed bin Abdulaziz bin Abdullah Almisha'al, Mohamed bin Saeed bin Ahmed Al-Buraiq Alasmari, Ahmed bin Salem bin Mufarrih Alhariri Alzahrani, Mohamed bin Abdulkarim bin Saad Alnufal, Abdullah bin Ibraheem bin Mohamed Almuqbil, Muhsin bin Ali bin Hasan bin Hussain Sama'a, Faris bin Hussain bin Mohamed Alqahtani, Ayedh bin Rashid bin Jumaan Alqahtani, Saleh bin Sulaiman bin Mohamed Alhassan, Abdullah bin Ali bin Saleh Alkabreesh, Khalid bin Hamid bin Ahmed Mutwakkil and Mohamed bin Saad bin Ibraheem bin Saad. The verdict concluded with the conviction of the aforementioned for violating Article 49 of the Capital Market Law and Article 2 of the Market Conduct Regulations by trading in the shares of the following companies; (Saudi Industrial Development Co., Tihama Advertising & Public Relations Co., Tourism Enterprise Co., Saudi Printing & Packaging Company, Alkhaleej Training and Education Company, Walaa Cooperative Insurance Company, Sanad Cooperative Insurance Company, Saudi Indian Company for Cooperative Insurance, Gulf Union Cooperative Insurance Company, Al Sagr Cooperative Insurance Co., CHUBB Arabia Cooperative Insurance Co., AXA Cooperative Insurance Company, Gulf General Cooperative Insurance Company, Al Alamiya for Cooperative Insurance Company, Solidarity Saudi Takaful Co. and Amana Cooperative Insurance Co.), during the period from 01/02/2011 until 26/10/2011. Such practices constituted manipulation and fraud, and created misleading and incorrect impressions about the securities of the aforementioned companies. The Committee's resolution included the imposition of a number of fines on them, detailed as follows:

First Defendant: Sharaf bin Mohamed bin Suhaim Alhariri Alzahrani

1) Imposing a fine on him amounting (50,000) Fifty Thousand Saudi Riyals for these violations.

2) Obliging him to pay (731,675.85) Seven Hundred Thirty One Thousand, Six Hundred Seventy Five Saudi Riyals and Eighty-Five Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.

3) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of five years.

4) Prohibiting him from managing portfolios and working as an investment advisor for a period of five years.

5) Prohibiting him from working in companies listed on the Exchange for a period of five years.

Second Defendant: Mohamed bin Abdullah bin Ibraheem Almuqbil

1) Imposing a fine on him amounting (675,000) Six Hundred Seventy-Five Thousand Saudi Riyals for these violations.

2) Obliging him to pay (757,079.80) Seven Hundred Fifty Seven Thousand, Seventy Nine Saudi Riyals and Eighty Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.

3) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of five years.

4) Prohibiting him from managing portfolios and working as an investment advisor for a period of five years.

5) Prohibiting him from working in companies listed on the Exchange for a period of five years.

Third Defendant: Ghormallah bin Raddad bin Saeed Alzahrani

1) Imposing a fine on him amounting (30,000) Thirty Thousand Saudi Riyals for these violations.

2) Obliging him to pay (23,335.30) Twenty Three Thousand, Three Hundred Thirty Five Saudi Riyals  and Thirty Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.

3) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of one year.

4) Prohibiting him from managing portfolios and working as an investment advisor for a period of one year.

5) Prohibiting him from working in companies listed on the Exchange for a period of one year.

Fourth Defendant: Sameer bin Mohamed bin Mustafa Alhulaisi

1) Imposing a fine on him amounting (30,000) Thirty Thousand Saudi Riyals for these violations.

2) Obliging him to pay (3,551.80) Three Thousand, Five Hundred, Fifty One Saudi Riyals and Eighty Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.

3) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years.

4) Prohibiting him from managing portfolios and working as an investment advisor for a period of three years.

5) Prohibiting him from working in companies listed on the Exchange for a period of three years.

Fifth Defendant: Mohamed bin Abdulaziz bin Abdullah Almisha'al

1) Imposing a fine on him amounting (40,000) Forty Thousand Saudi Riyals for these violations.

2) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of one year.

3) Prohibiting him from managing portfolios and working as an investment advisor for a period of one year.

4) Prohibiting him from working in companies listed on the Exchange for a period of one year.

Sixth Defendant: Mohamed bin Saeed bin Ahmed Al-Buraiq Alasmari

1) Imposing a fine on him amounting (960,000) Nine Hundred Sixty Thousand Saudi Riyals for these violations.

2) Obliging him to pay (1,261,909.90) One Million, Two Hundred Sixty One Thousand, Nine Hundred Nine Saudi Riyals and Ninety Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.

3) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of five years.

4) Prohibiting him from managing portfolios and working as an investment advisor for a period of five years.

5) Prohibiting him from working in companies listed on the Exchange for a period of five years.

Seventh Defendant: Ahmed bin Salem bin Mufarrih Alhariri Alzahrani

1) Imposing a fine on him amounting (10,000) Ten Thousand Saudi Riyals for these violations.

2) Obliging him to pay (36,403.50) Thirty Six Thousand, Four Hundred Three Saudi Riyals and Fifty Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.

3) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of one year.

4) Prohibiting him from managing portfolios and working as an investment advisor for a period of one year.

5) Prohibiting him from working in companies listed on the Exchange for a period of one year.

Eighth Defendant: Mohamed bin Abdulkarim bin Saad Alnufal

1) Imposing a fine on him amounting (20,000) Twenty Thousand Saudi Riyals for these violations.

2) Obliging him to pay (25,452.00) Twenty Five Thousand, Four Hundred Fifty Two Saudi Riyals to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.

3) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of one year.

4) Prohibiting him from managing portfolios and working as an investment advisor for a period of one year.

5) Prohibiting him from working in companies listed on the Exchange for a period of one year.

Ninth Defendant: Abdullah bin Ibraheem bin Mohamed Almuqbil

1) Imposing a fine on him amounting (30,000) Thirty Thousand Saudi Riyals for these violations.

2) Obliging him to pay (10,840.00) Ten Thousand, Eight Hundred Forty Saudi Riyals to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.

3) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of one year.

4) Prohibiting him from managing portfolios and working as an investment advisor for a period of one year.

5) Prohibiting him from working in companies listed on the Exchange for a period of one year.

Tenth Defendant: Muhsin bin Ali bin Hasan bin Hussain Sama'a

1) Imposing a fine on him amounting (100,000) One Hundred Thousand Saudi Riyals for these violations.

2) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of one year.

3) Prohibiting him from managing portfolios and working as an investment advisor for a period of one year.

4) Prohibiting him from working in companies listed on the Exchange for a period of one year.

Eleventh Defendant: Faris bin Hussain bin Mohamed Alqahtani

1) Imposing a fine on him amounting (140,000) One Hundred Forty Thousand Saudi Riyals for these violations.

2) Obliging him to pay (94,690.50) Ninety Four Thousand, Six Hundred Ninety Saudi Riyals and Fifty Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.

3) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of one year.

4) Prohibiting him from managing portfolios and working as an investment advisor for a period of one year.

5) Prohibiting him from working in companies listed on the Exchange for a period of one year.

Twelfth Defendant: Ayedh bin Rashid bin Jumaan Alqahtani

1) Imposing a fine on him amounting (170,000) One Hundred Seventy Thousand Saudi Riyals for these violations.

2) Obliging him to pay (60,739.20) Sixty Thousand, Seven Hundred Thirty Nine Saudi Riyals and Twenty Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.

3) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years.

4) Prohibiting him from managing portfolios and working as an investment advisor for a period of three years.

5) Prohibiting him from working in companies listed on the Exchange for a period of three years.

Thirteenth Defendant: Saleh bin Sulaiman bin Mohamed Alhassan

1) Imposing a fine on him amounting (80,000) Eighty Thousand Saudi Riyals for these violations.

2) Obliging him to pay (608,212.40) Six Hundred Eight Thousand, Two Hundred Twelve Saudi Riyals and Forty Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.

3) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of three years.

4) Prohibiting him from managing portfolios and working as an investment advisor for a period of three years.

5) Prohibiting him from working in companies listed on the Exchange for a period of three years.

Fourteenth Defendant: Abdullah bin Ali bin Saleh Alkabreesh

1) Imposing a fine on him amounting (40,000) Forty Thousand Saudi Riyals for these violations.

2) Obliging him to pay (110,192.80) One Hundred Ten Thousand, One Hundred Ninety Two Saudi Riyals and Eighty Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.

3) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of one year.

4) Prohibiting him from managing portfolios and working as an investment advisor for a period of one year.

5) Prohibiting him from working in companies listed on the Exchange for a period of one year.

Fifteenth Defendant: Khalid bin Hamid bin Ahmed Mutwakkil

1) Imposing a fine on him amounting (110,000) One Hundred Ten Thousand Saudi Riyals for these violations.

2) Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of five years.

3) Prohibiting him from managing portfolios and working as an investment advisor for a period of five years.

4) Prohibiting him from working in companies listed on the Exchange for a period of five years.

Sixteenth Defendant: Mohamed bin Saad bin Ibraheem bin Saad.

1. Imposing a fine on him amounting (40,000) Forty Thousand Saudi Riyals for these violations.

2. Obliging him to pay (33,124.30) Thirty Three Thousand, One Hundred Twenty Four Saudi Riyals and Thirty Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.

3. Prohibiting him from trading by buying shares of the companies listed on the Exchange for his own account or in favor of others, for a period of one year.

4. Prohibiting him from managing portfolios and working as an investment advisor for a period of one year.

5. Prohibiting him from working in companies listed on the Exchange for a period of one year.

The Committee's resolution also included obliging a number of investors to pay an amount of (2,803,608,20) Two Million, Eight Hundred Three Thousand, Six Hundred Eight Saudi Riyals and Twenty Halalas, for the illegal gains on their portfolios, resulted from the trading violations made by the violators/ Mohamed bin Abdulaziz bin Abdullah Almisha'al, Mohamed bin Saeed bin Ahmed Al-Buraiq Alasmari and Muhsin bin Ali bin Hasan bin Hussain Sama'a.

Persons affected by these acts may file a compensation claim to the Committee as per Article 57 of the Capital Market Law, provided that such claim is proceeded by a complaint filed to the Authority. 

(To view the dates of trading and securities in question, click here)