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. (2912/L.S/2023) of 1444 H., dated 22/11/1444 H., corresponding to 11/06/2023, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Muhammad bin Abdullah bin Saleh Alsa'ab, Mdaehesh bin Muhammad bin Abdulrahman Almdaehesh, Khalid bin Ibrahim bin Ali Alsane', Saleh bin Muhammad bin Obaid Alrshoud, Ismail bin Saleh bin Muhammad Alhathloul, Muhammad bin Saleh bin Ibrahim Alhuraib, Sultan bin Abdulrahman bin Muhammad Aba Alkhail, Ahmad bin Ali bin Sulaiman Alyahya, Fahad bin Abdulaziz bin Sulaiman Alskeit, Abdulmalik bin Abdulaziz bin Sulaiman Alskeit, Dham bin Muhammad bin Hamoud Aldham, Abdullatif bin Abdulaziz bin Abdullah Alkanhal, Ali bin Saleh bin Ali Alothaim, Abdullah bin Muhammad bin Abdulkarim Alaqul, Ali bin Sulaiman bin Ali Alothman, Yazid bin Musaed bin Saud Alosaimi, and Fawaz bin Jarbou' bin Nasser Alqfari.

The decision concluded with the conviction of the abovementioned individuals for violating Article (49/a) of the Capital Market Law, as well as Article (2/a) of the Market Conduct Regulations, when trading in the shares of Dar Alarkan Real Estate Development Company during the period between 27/04/2017 and 23/01/2018, as well as the period between 18/02/2018 and 31/05/2018, as such acts and practices represent manipulation and fraud, and created a false and misleading impression regarding the security of the said company. Their violation is represented in their act, through their portfolios or the portfolios they manage, of entering purchase orders and sale orders aiming to affect the price of the share, and entering purchase orders and sale orders aiming to affect the closing share price.

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

First: Muhammad bin Abdullah bin Saleh Alsa'ab:

1. Imposing a fine upon him amounting to (SR. 100,000) one hundred thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 14,149,383.12) fourteen million one hundred forty-nine thousand three hundred eighty-three Saudi Riyals and twelve Halalas, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six months, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of Six months.

Second: Mdaehesh bin Muhammad bin Abdulrahman Almdaehesh:

1. Imposing a fine upon him amounting to (SR. 400,000) four hundred thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 56,890,157.69) fifty-six million eight hundred ninety thousand one hundred fifty-seven Saudi Riyals and sixty-nine Halalas, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Third: Khalid bin Ibrahim bin Ali Alsane':

1. Imposing a fine upon him amounting to (SR. 400,000) four hundred thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 66,136,537.47) sixty-six million one hundred thirty-six thousand five hundred thirty-seven Saudi Riyals and forty-seven Halalas, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of One year.
   
    

Forth: Saleh bin Muhammad bin Obaid Alrshoud:

1. Imposing a fine upon him amounting to (SR. 60,000) sixty thousand Saudi Riyals.
2. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six months, excluding trading through investment funds with Authorized Persons.
3. Banning him from managing portfolios in the Saudi Exchange for a period of Six months.

Fifth: Ismail bin Saleh bin Muhammad Alhathloul:

1. Imposing a fine upon him amounting to (SR. 375,000) three hundred seventy-five thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 19,355,245.10) nineteen million three hundred fifty-five thousand two hundred forty-five Saudi Riyals and ten Halalas, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Sixth: Muhammad bin Saleh bin Ibrahim Alhuraib:

1. Imposing a fine upon him amounting to (SR. 80,000) eighty thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 3,797,677.34) three million seven hundred ninety-seven thousand six hundred seventy-seven Saudi Riyals and thirty-four Halalas, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six months, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of Six months.

Seventh: Sultan bin Abdulrahman bin Muhammad Aba Alkhail:

1. Imposing a fine upon him amounting to (SR. 450,000) four hundred fifty thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 60,750,571.08) sixty million seven hundred fifty thousand five hundred seventy-one Saudi Riyals and eight Halalas, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Eighth: Ahmad bin Ali bin Sulaiman Alyahya:

1. Imposing a fine upon him amounting to (SR. 900,000) nine hundred thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 50,715,822.52) fifty million seven hundred fifteen thousand eight hundred twenty-two Saudi Riyals and fifty-two Halalas, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Ninth: Fahad bin Abdulaziz bin Sulaiman Alskeit:

1. Imposing a fine upon him amounting to (SR. 375,000) three hundred seventy-five thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 117,223,531.58) one hundred seventeen million two hundred twenty-three thousand five hundred thirty-one Saudi Riyals and fifty-eight Halalas, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Tenth: Abdulmalik bin Abdulaziz bin Sulaiman Alskeit:

1. Imposing a fine upon him amounting to (SR. 175,000) one hundred seventy-five thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 32,271,563.02) thirty-two million two hundred seventy-one thousand five hundred sixty-three Saudi Riyals and two Halalas, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six month, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of Six month.

Eleventh: Dham bin Muhammad bin Hamoud Aldham:

1. Imposing a fine upon him amounting to (SR. 350,000) three hundred fifty thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 74,221,742.85) seventy-four million two hundred twenty-one thousand seven hundred forty-two Saudi Riyals and eighty-five Halalas, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Twelfth: Abdullatif bin Abdulaziz bin Abdullah Alkanhal:

1. Imposing a fine upon him amounting to (SR. 120,000) one hundred twenty thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 10,341,679.21) ten million three hundred forty-one thousand six hundred seventy-nine Saudi Riyals and twenty-one Halalas, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six month, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of Six month.

Thirteenth: Ali bin Saleh bin Ali Alothaim:

1. Imposing a fine upon him amounting to (SR. 140,000) one hundred forty thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 47,288,028.01) forty-seven million two hundred eighty-eight thousand twenty-eight Saudi Riyals and one Halala, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six month, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of Six month.

Fourteenth: Abdullah bin Muhammad bin Abdulkarim Alaqul:

1. Imposing a fine upon him amounting to (SR. 225,000) two hundred twenty-five thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 611,542.90) six hundred eleven thousand five hundred forty-two Saudi Riyals and ninety Halalas, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six month, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of Six month.

Fifteenth: Ali bin Sulaiman bin Ali Alothman:

1. Imposing a fine upon him amounting to (SR. 450,000) four hundred fifty thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 80,293,281.71) eighty million two hundred ninety-three thousand two hundred eighty-one Saudi Riyals and seventy-one Halalas, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Sixteenth: Yazid bin Musaed bin Saud Alosaimi:

1. Imposing a fine upon him amounting to (SR. 550,000) five hundred fifty thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 79,773,105.69) seventy-nine million seven hundred seventy-three thousand one hundred five Saudi Riyals and sixty-nine Halalas, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Seventeenth: Fawaz bin Jarbou' bin Nasser Alqfari:

1. Imposing a fine upon him amounting to (SR. 925,000) nine hundred twenty-five thousand Saudi Riyals.
2. Obliging him to pay to the CMA account the amount of (SR. 83,111,832.35) eighty-three million one hundred eleven thousand eight hundred thirty-two Saudi Riyals and thirty-five Halala, against the illegal gains achieved in his portfolios.
3. Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six month, excluding trading through investment funds with Authorized Persons.
4. Banning him from managing portfolios in the Saudi Exchange for a period of Six month.

The decision also included obliging a number of investors to pay to the CMA account a total amount of (SR. 399,604,659.75) three hundred ninety-nine million six hundred four thousand six hundred fifty-nine Saudi Riyals and seventy-five Halalas, against the illegal gains achieved in their portfolios that resulted from the illegal trading transactions committed by Ismail bin Saleh bin Muhammad Alhathloul, Yazid bin Musaed bin Saud Alosaimi, Ahmad bin Ali bin Sulaiman Alyahya, Fawaz bin Jarbou' bin Nasser Alqfari and Sultan bin Abdulrahman bin Muhammad Aba Alkhail.

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)

​ 

​