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. (2673/L.S/2022) of 1444 H., dated 07/03/1444 H., corresponding to 03/10/2022, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against Abdullah bin Sanat bin Mebtel Almutairi.
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 the shares of the following companies: Middle East Paper Co., Astra Industrial Group, Bawan Co., Electrical Industries Co., Al Yamamah Steel Industries Co., Saudi Steel Pipe Co., National Gypsum Co., AYYAN Investment Co., National Metal Manufacturing and Casting Co., Saudi Chemical Co., Al Abdullatif Industrial Investment Co., Sinad Holding Co., Fitaihi Holding Group, Red Sea International Co., Alandalus Property Co., Jazan Energy and Development Co., Saudi Arabian Cooperative Insurance Co., Buruj Cooperative Insurance Co., and Al Alamiya for Cooperative Insurance Co., during the period between 30/03/2020 and 13/09/2020.
Such acts and practices constituted manipulation and fraud, and created a false and misleading impression regarding the securities of the abovementioned companies. The violation consists of entering purchase orders on the shares of those companies, and then promoting them through his account on the social networking site "Twitter" with the identifier (@asm1414m), and in the "Telegram" application with the identifier (Abu Nayef channel), with the intention of influencing the prices of these shares and then sell them.
The decision included the imposition of a number of sanctions upon him according to the following:
- Imposing a fine upon him amounting to (SR. 720,000) seven hundred and twenty thousand Saudi Riyals.
- Obliging him to pay to the CMA account the amount of (SR. 994,269.82) nine hundred ninety-four thousand two hundred sixty-nine Saudi Riyals and eighty-two Halalas against the illegal gains achieved in his investment portfolio.
The decision also included obliging a number of investors to pay to the CMA account the total amount of (SR. 128,215.64) one hundred twenty-eight thousand two hundred fifteen Saudi Riyals and sixty-four Halalas against the illegal gains achieved in their investment portfolios that resulted from the violations committed by the convicted person.
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)
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 the 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 )
