«السوق المالية»: إدانة 10 مستثمرين وإلزامهم وآخرين بدفع 96 مليون ريال

The Capital Market Authority announced the issuance of a final decision by the Appeals Committee in Securities Disputes against 10 investors, imposing fines totaling 860,000 riyals, and obligating them and other investors to pay more than 96 million riyals for the illicit gains realized from those violations.

The Appeals Committee in Securities Disputes fined Ibrahim bin Abdullah bin Muhammad Al-Junaidli 150,000 riyals and obligated him to pay 20.52 million riyals for the illicit gains realized on his investment portfolio. Ahmed bin Ali bin Suleiman Al-Yahya was fined 75,000 riyals and obligated to pay 23.48 million riyals for the illicit gains in his portfolio. Meanwhile, the fine for Ismail bin Saleh bin Muhammad Al-Hathloul was 175,000 riyals, and Khalid bin Abdullah bin Shalash Al-Shalash was fined 125,000 riyals, along with a fine of 15,000 riyals imposed on Daham bin Muhammad bin Hamoud Al-Daham, who was also obligated to pay 3,183.92 riyals for the illicit gains in his portfolio.

The committee obligated Abdulrahman bin Abdullah bin Abdulrahman Al-Urayni to pay 12.05 million riyals for the illicit gains in his portfolio and imposed a financial fine of 100,000 riyals on him. As for Abdulmalik bin Abdulaziz bin Suleiman Al-Sukait, a fine of 20,000 riyals was imposed on him.

The total fine for each of: "Ali bin Saleh bin Ali Al-Othaim, and Majid bin Roumi bin Suleiman Al-Roumi" was 80,000 riyals, with the first being obligated to pay 5.24 million riyals for the illicit gains in his portfolio. Finally, a fine of 40,000 riyals was imposed on Suleiman bin Muhammad bin Saleh Al-Othaim, who was obligated to pay an amount of 2.92 million riyals due to the illicit gains on his portfolio.

The investors violated the Capital Market System by individually and collectively placing buy and sell orders aimed at influencing the stock price, and placing buy orders to achieve a high closing auction price, during their trading of Dar Al-Arkan Real Estate Development Company shares, from February 3, 2019, to May 12, 2020, through their investment portfolios or the investment portfolios they manage. These actions and practices constituted manipulation and fraud, creating a misleading and incorrect impression regarding the value of the financial instrument of the mentioned company.

The committee, in its final decision, obligated the ten convicted individuals to pay 64.2 million riyals for the illicit gains realized on their investment portfolios due to the violations for which they were convicted, in addition to obligating several investors to pay a total amount of 31.9 million riyals to the Authority's account, for the illicit gains realized on their investment portfolios.

The committee also ruled in its decision to fine the convicted individuals a total of 860,000 riyals and to ban all of them from trading directly and indirectly in the capital market for periods ranging from two to three years.

The Authority clarified that the final decision of the Appeals Committee in Securities Disputes came as a result of coordination and joint cooperation between the Authority and the relevant concerned parties, in light of the public prosecution case filed by the Public Prosecution and referred to it by the Capital Market Authority against the investors for violating the Capital Market System.

The Authority emphasized the importance of the trust that investors have in the capital market for its growth and development, as the Authority continuously works to monitor any violations, apprehend the perpetrators, and complete the necessary procedures to impose deterrent penalties against them, thereby enhancing the Authority's efforts to create an attractive investment environment for all categories of investors that is safe from unfair or improper practices or those involving fraud, deception, or manipulation.

According to the Authority, any party harmed by the violations subject to this lawsuit has the right to submit an individual or collective claim to the Committee for the Resolution of Securities Disputes against the convicted individuals to seek compensation for the harm caused by these violations, provided that a complaint is submitted to the Capital Market Authority in this regard beforehand, through the following link (Complaint Submission Link). It is worth noting that the General Secretariat of the Committees for the Resolution of Securities Disputes will announce to the public on its website when any collective lawsuit is registered, allowing other investors harmed by the same violations to apply to the committee to join the collective lawsuit.