An Announcement from the Capital Market Authority regarding the decisions issued by The Appeal Committee for the Resolution of Securities Disputes Convicting a violator of the Capital Market Law and its Implementing Regulations
Sunday, September 30, 2018 at 4:50 PM
Sun Sep 30, 2018 16:50
The Capital Market Authority announces that the Appeal Committee for the Resolution of Securities Disputes has issued its decision dated 01/12/1439H corresponding to 02/08/2018G on the lawsuit filed by The Public Prosecution (referred to it by the Capital Market Authority) against Abdurrahman bin Hussain bin Abdullah Jalalh. The verdict concluded with the conviction of the aforementioned for violating Articles 31 and 49 of the Capital Market Law, Articles 2 and 8 of the Market Conduct Regulations and Articles 5 and 17 of the Securities Business Regulations by carrying out a security business, as he provided recommendations (Advising activities) without a license, beside advertising his activities via the social network (Twitter) and the chatting app (WhatsApp),. In addition to performing a number of illegal actions and practices while trading in the shares of the following companies; (Saudi Industrial Services Co., Middle East Specialized Cables Co., Fitaihi Holding Group, Al Gassim Investment Holding Co., Tabouk Agricultural Development Co., Saudi Fisheries Co., Walaa Cooperative Insurance Co., Al Ahlia Insurance Co., Arabia Insurance Cooperative Co. and Saudi Reinsurance Co.) during the period from 19/11/2015G until 09/02/2016G. These such practices constituted manipulation and fraud and created a misleading and incorrect impression about the securities of the mentioned companies. The Appeal Committee's Resolution included the imposition of a number of fines on him, detailed as follows:
1. Imposing a fine on him amounting to (180,000) One Hundred and Eighty Thousand Riyals.
2. Obliging him to pay (95,450.23) Ninety Five Thousand Four Hundred Fifty Saudi Riyals and Twenty Three Halalas to the Capital Market Authority’s account, for the illegal gains resulted from these violations on his investment portfolio.
3. Preventing him from trading (buying) the shares of companies listed in the Saudi Exchange, for his own account or in favor of others, for a period of 3 years.
4. Preventing him from working at companies whose shares are traded on the Exchange for a period of 3 years.
The Committee's resolution also included obliging an investor to pay an amount of (523,956,53) Five Hundred Twenty-Three Thousand Nine Hundred Fifty-Six Saudi Riyals and Fifty Three Halalas, for the illegal gains resulted from the trading violations made by Abdurrahman bin Hussain bin Abdullah Jalalh.
The Capital Market Authority affirms on its devotion to implement the Capital Market Law and its Implementing Regulations as well as protecting the investors from illegal practices. Persons affected by these acts can file a compensation claim to the Committee as per Article 57 of the Capital Market Law, provided that such claim is proceeded by a complaint filed to the Authority.
(To view the dates of trading and securities in question, click here)