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) decision No. (1900/L.S/2020) of 1441 H., dated 10/09/1441 H., corresponding to 03/05/2020, in the case filed by the Public Prosecution (referred to by the Capital Market Authority (CMA)) against Muhammad bin Saad bin Sa’dan Aljadha’i, and Faisal bin Abdulrahman bin Ali Alajlan.

The decision concluded with the conviction of the abovementioned individuals for violating Article (49) of the Capital Market Law, and Article (2) of the Market Conduct Regulations, when trading in the shares of the following companies: )National Metal Manufacturing and Casting Co., National Agricultural Development Co., Arabian Cement Co., Alandalus Property Co., Aljazira Takaful Taawuni Co., Alkhaleej Training and Education Co., Al-Rajhi Company for Cooperative Insurance, Electrical Industries Co., Al Abdullatif Industrial Investment Co., Alujain Holding Corp., Abdullah A. M. Al-Khodari Sons Co., City Cement Co., Hail Cement Co., Saudi Arabian Amiantit Co., Bawan Co., Tabuk Agricultural Development Co., Methanol Chemicals Co. and Astra Industrial Group.( during the period from 02/08/2015G. to 18/04/2016G.. These acts and practices constituted manipulation and fraud, and created a misleading and incorrect impression on the securities of the aforementioned companies.

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

First defendant: Muhammad bin Saad bin Sa’dan Aljadha’i:

1.      Imposing a fine of (SR. 710,000) seven hundred and ten thousand Saudi Riyals for such violations.

2.      Obliging him to pay to the CMA account the amount of (SR. 594,696.61) five hundred and ninety four thousand six hundred and ninety six Saudi Riyals and sixty-one Halalas, for the illegal gains achieved on his investment portfolio.

3.      Banning him from trading by purchasing shares of companies listed on the Exchange for his own account or in favor of others for a period of One year, excluding trading through investment funds with Authorised Persons.

Second defendant: Faisal bin Abdulrahman bin Ali Alajlan:

1.      Imposing a fine of (SR. 1,740,000) one million seven hundred and forty thousand Saudi Riyals for such violations.

2.      Obliging him to pay to the CMA account the amount of (SR. 17,673,749.64) seventeen million six hundred and seventy three thousand seven hundred and forty nine Saudi Riyals and sixty-four Halalas, for the illegal gains achieved on his investment portfolio.

3.      Banning him from trading by purchasing shares of companies listed on the Exchange for his own account or in favor of others for a period of One year, excluding trading through investment funds with Authorised Persons.

The decision also included obliging an investor to pay to the CMA account the amount of (SR. 12,509,856.03) twelve million five hundred and nine thousand eight hundred fifty six Saudi Riyals and three Halalas, for the illegal gains achieved in his investment portfolio that resulted from the trading violations committed by the convicted person ; Faisal bin Abdulrahman bin Ali Alajlan.

Furthermore, any person affected by these acts is entitled to file a compensation claim with the CRSD as per Article (57) of the Capital Market Law, provided that such claim is preceded by a complaint filed with the CMA on this regard, via the following link: (click here)

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