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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 Resolution of Securities Disputes' (ACRSD) final decision No. (1997/L.S/2020) of 1442 H., dated 14/01/1442 H., corresponding to 02/09/2020, in the case filed by the Public Prosecution (referred to by the Capital Market Authority (CMA)) against: “Badr bin Saleh bin Hamoud Altarifi, Muhammad Hefni Mahmoud Thabet, Khalid bin Omar bin Mohsen Alkaf, Thamer bin Muhammad bin Abdullah Alhosani, and Ahmed Hussein Ali Abdulnabi".  

The decision concluded with the conviction of “Thamer bin Muhammad bin Abdullah Alhosani and Ahmed Hussein Ali Abdulnabi" in absentia and the remaining abovementioned individuals in their presence for violating Article (49/a) of the Capital Market Law, by practices that created a false and misleading impression about the value of the security of Etihad Etisalat (Mobily) Company by proving the misleading and incorrect information in the Company's financial statements for the second, third and fourth quarter of 2013, as well as the Company's financial statements for the first, second and third quarter of 2014, which led to inflated revenues in the Company's financial statements during such periods.

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

First defendant: Badr bin Saleh bin Hamoud Altarifi:

1. Imposing a fine upon him amounting to (SR. 300,000) three hundred thousand Saudi Riyals.
2. Banning him from managing portfolios and working as an investment advisor for a period of (7) seven years.
3. Banning him from working in companies whose shares are traded in the Exchange for a period of (7) seven years.

Second defendant: Muhammad Hefni Mahmoud Thabet:

1. Imposing a fine upon him amounting to (SR. 120,000) one hundred twenty thousand Saudi Riyals.
2. Banning him from managing portfolios and working as an investment advisor for a period of (3) three years.
3. Banning him from working in companies whose shares are traded in the Exchange for a period of (3) three years.

Third defendant: Khalid bin Omar bin Mohsen Alkaf:

1. Imposing a fine upon him amounting to (SR. 600,000) six hundred thousand Saudi Riyals.
2. Banning him from managing portfolios and working as an investment advisor for a period of (7) seven years.
3. Banning him from working in companies whose shares are traded in the Exchange for a period of (7) seven years.

Fourth defendant: Thamer bin Muhammad bin Abdullah Alhosani:

1. Imposing a fine upon him amount to (SR. 600,000) six hundred thousand Saudi Riyals.
2. Banning him from managing portfolios and working as an investment advisor for a period of (7) seven years.
3. Banning him from working in companies whose shares are traded in the Exchange for a period of (7) seven years.

Fifth defendant : Ahmed Hussein Ali Abdulnabi:

1. Imposing a fine upon him amounting to (SR. 240,000) two hundred forty thousand Saudi Riyals.
2. Banning him from managing portfolios and working as an investment advisor for a period of (5) five years.
3. Banning him from working in companies whose shares are traded in the Exchange for a period of (5) five years.

Furthermore, any person affected by these acts is entitled to file a compensation claim (as individual or class action) as per the regulatory procedures with the CRSD, provided that such claim is preceded by a complaint filed with the CMA on this regard, noted that the CRSD will announce on its website in case of registering any class action in order to enable the rest of the investors affected by the same acts to apply to the CRSD to join the class action. (via the link)