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. (2566/L.S/2022) of 1443 H., dated 29/12/1443 H., corresponding to 28/07/2022G., on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against Fawzi bin Hasan bin Abdulwahab Alsahaf.
The decision concluded with the conviction of the abovementioned individual for violating Article (49) of the Capital Market Law, as well as Article (8) of the Market Conduct Regulations, when trading in the shares of the following companies:
Saudi Steel Pipe Co., National Gas and Industrialization Co., Lazurde Company for Jewelry, Thob Al Aseel Co., Saudi Ground Services Co., Ash-Sharqiyah Development Co., Al-Baha Investment and Development Co., Alahli Takaful Co., Al Alamiya for Cooperative Insurance Co., United Electronics Co., Al-Babtain Power and Telecommunication Co., Saudi Research and Media Group, National Company for Learning and Education, Amana Cooperative Insurance Co., Raydan Food Co., Herfy Food Services Co., Al Moammar Information Systems Co., CHUBB Arabia Cooperative Insurance Co., Al-Rajhi Company for Cooperative Insurance, Saudi Real Estate Co., Tabuk Agricultural Development Co., United Cooperative Assurance Co., Dallah Healthcare Co., Saudi Chemical Co., Basic Chemical Industries Co., Saudi Reinsurance Co., United Wire Factories Co., Abdulmohsen Alhokair Group for Tourism and Development, Al-Omran Industrial Trading Co., and Zahrat Al Waha for Trading Co., during the period between 17/02/2020G. until 21/09/2020G.
Such acts and practices constituted manipulation and fraud, and created a false and misleading impression regarding the securities of the abovementioned companies; as he purchased shares of a number of the abovementioned companies, through his investment portfolio, and promoted them through his accounts on the social media platforms via “Twitter" with the username (@fawzi990) and “Telegram" with the username (ALKING) with the intent of urging others to buy or sell in the shares of those companies, and then entering sell orders after the price of these shares was affected.
The decision included the imposition of a number of sanctions upon him according to the following:
- Imposing a fine upon him amounting to (SR. 350,000) three hundred and fifty thousand Saudi Riyals.
- Obliging him to pay to the CMA account the amount of (SR. 135,901/71) one hundred and thirty-five thousand nine hundred and one Saudi Riyals and seventy one Halalas against the illegal gains achieved on his investment portfolio.
The decision also included obliging a number of investors to pay to the CMA account the total amount of (SR. 317,571/34) three hundred and seventeen thousand five hundred and seventy one Saudi Riyals and thirty four Halalas for the illegal gains achieved in their investment portfolios that resulted from the illegal trading by the convicted individual.
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.
(To view the dates of trading and securities in relation to the violations, click here)
