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. (2860/L.S/2023) of 1444 H., dated 21/09/1444 H., corresponding to 12/04/2023, in the public penal case filed by the Public Prosecution (referred to by the Capital Market Authority (CMA)) against: Muhammad bin Abdullah bin Ibrahim Almuqbel.
The decision concluded with the conviction of the abovementioned individual for violating Article (31) of the Capital Market Law, as well as Article (5) of the Securities Business Regulations, for carrying out a securities business work represented in “Managing", as he managed investment portfolios for a number of investors without obtaining a license from the CMA, in addition to violating Article (49) of the Capital Market Law, as well as Article (2) of the Securities Business Regulations when trading in shares of the following companies: Basic Chemical Industries Co., Fitaihi Holding Group, the Mediterranean and Gulf Insurance and Reinsurance Co., SABB Takaful Co., Alandalus Property Co., Saudi Enaya Cooperative Insurance Co., Electrical Industries Co., Saudi Vitrified Clay Pipes Co., Zahrat Al Waha for Trading Co. and Arabia Insurance Cooperative Co. during the period between 10/02/2020 and 16/09/2020, as such acts and practices represent fraud and manipulation, and created a false and misleading impression regarding the securities of such companies. His violation is proven by his act - using the portfolios he manages for a number of investors - of entering purchase orders aiming to influence the price of the share, as well as entering purchase orders aiming to achieve higher closing price bid.
The decision included the imposition of a number of sanctions upon him according to the following:
1. Imprisonment for Three months.
2. Payment of fine amounting to (SR. 4,850,000) four million eight hundred fifty thousand Saudi Riyals.
3. Ban from trading in shares by purchasing in the Saudi exchange either directly or indirectly, excluding trading through investment funds with Capital Market Institutions for Five years.
4. Ban from practicing brokerage or managing portfolios, or working as an investment advisor in the Saudi exchange for Five years.
5. Ban from working in institutions under the supervision of the CMA, for Five years.
The decision also included obliging a number of investors to pay to the CMA account the total amount of (SR. 1,538,235.09) one million five hundred thirty eight thousand two hundred thirty five Saudi Riyals and nine Halalas for the illegal gains achieved in their investment portfolios that resulted from the illegal trading by the convicted person; Muhammad bin Abdullah bin Ibrahim Almuqbel.
Furthermore, any person affected by the violations of Article (49) of the Capital Market Law 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. Also, in terms of the violations of Article (31) of the Capital Market Law in this case, any person who has entered into an agreement or contract with the convicted person in relation to this violation is entitled to file a claim (as individual or class action) with the CRSD to request the rescission of the agreement or contract and the recovery of any money or other property paid or transferred under the agreement or contract, as per Article (60/b) of the Capital Market Law. Such claims, however, must be 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)
