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. (3847/L.S/2025) of 1447 H., dated 19/01/1447 H., corresponding to 14/07/2025, on the public penal case filed by the Public Prosecution (referred to it by the Capital Market Authority (CMA)) against: Majed bin Rafe' bin Ibrahim Alghamdi, Diyar Altamlik Real Estate Company and Abdulrahman bin Rafe' bin Ibrahim Alghamdi.
The decision concluded with the conviction of the abovementioned persons and entity of violating Article (31) of the Capital Market Law as well as Article (5) and Article (17) of the Securities Business Regulations, when practicing a securities business, represented in the activity of “Managing", by establishing and operating real estate investment funds from 27/02/2023 until 16/11/2023, and advertising such practice via the social media account (diyar_altamlik) in Snapchat and Instagram as well as on the Company's website (diyartaltamlik.com) in exchange for a percentage of the invested funds, without obtaining a license from the CMA.
The decision included the imposition of a number of sanctions upon them according to the following:
First: Majed bin Rafe' bin Ibrahim Alghamdi:
- Imposing a fine upon him amounting to (SR. 50,000) fifty thousand Saudi Riyals for violating Article (31) of the Capital Market Law as well as Article (5) of the Securities Business Regulations.
- Imposing a fine upon him amounting to (SR. 50,000) fifty thousand Saudi Riyals for violating Article (17) of the Securities Business Regulations.
Second: Diyar Altamlik Real Estate Company:
- Imposing a fine upon the Company amounting to (SR. 50,000) fifty thousand Saudi Riyals for violating Article (31) of the Capital Market Law as well as Article (5) of the Securities Business Regulations.
- Imposing a fine upon the Company amounting to (SR. 50,000) fifty thousand Saudi Riyals for violating Article (17) of the Securities Business Regulations.
Third: Abdulrahman bin Rafe' bin Ibrahim Alghamdi:
- Imposing a fine upon him amounting to (SR. 50,000) fifty thousand Saudi Riyals for violating Article (31) of the Capital Market Law as well as Article (5) of the Securities Business Regulations.
- Imposing a fine upon him amounting to (SR. 50,000) fifty thousand Saudi Riyals for violating Article (17) of the Securities Business Regulations.
Furthermore, any person who has entered into an agreement or contract with the convicted persons and entity in relation to these violations 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, provided that such claim is preceded by a complaint filed with the CMA on this regard, via the following link (File Complaint Link).
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 who concluded an agreement or contract with the convicted persons and entity to apply to the CRSD to join the class action.
