RIYADH — The Appeal Committee for the Resolution of Securities Disputes (ACRSD) has penalized 14 persons convicted of manipulating shares of several Saudi companies. The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announced on Sunday the issuance of the final decision by the Appeal Committee in the case filed against them by the Saudi Capital Market Authority (CMA). The Appeal Committee found that the manipulations were committed during the period between September 3, 2018, and September 15, 2019. The Appeal Committee slapped fines on each one of the 14 convicts in addition to obliging 10 of them and four others to make payment of a fixed amount of money, involved in manipulation, into the account of CMA. The committee found that Talal bin Muhammad Alomari, one of the respondents, violated Article (12.d) and some other provisions of CMA's Market Conduct Regulations while others violated Article (12.d) of the Market Conduct Regulations when trading in the shares of a number of listed companies. This is after Talal Alomari, who is a registered person in Hermes Financial Group, disclosed to the rest of the respondents' information regarding the orders of the clients of the financial group in which he works. Consequently, other respondents benefited from the essential effect of such orders when trading in the shares of a number of companies. The Appeal Committee slapped on Talal bin Muhammad bin Salem Al Salem Alomari a fine amounting to SR10,000 for violating Article (24.a) of the Authorized Persons Regulations; and a fine of SR390,000 for violating Article (12.c) of the Market Conduct Regulations; in addition to banning him from working in any registration-required positions, as well as in investment portfolio management or as an investment advisor for a period of 90 days. The Appeal Committee also imposed penalties against the following 13 convicts: 1-Khalid bin Nasser bin Abdullah bin Muhaini: Fine amounting to SR520,000 and obligating to pay SR357,416.98 to the CMA account against the illegal gains achieved in his investment portfolio. 2- Haitham bin Fahad bin Mazyad Almazyad: Fine amounting to SR 270,000 and payment of SR59,162.71 to the CMA account against the illegal gains achieved in his investment portfolio. 3-Mish'al bin Abdulrahman bin Muhammad Alruqaeb: Fine of SR 200,000 and payment of SR155,097.80 to the CMA account. 4- Muhammad bin Abdulrahman bin Muhammad Alruqaeb: Fine of SR170,000 and payment of SR71,450.24 to the CMA account 5- Salma bint Muhana bin Hamad Aljash'ami Alshammari: Fine of SR 90,000 and payment of SR44,360.04 to the CMA account 6-: Abdulrahman bin Abdulaziz bin Abdulrahman Almane': Fine of SR 60,000 and payment of SR9,468.98 to the CMA account 7- Ibrahim bin Muhammad bin Ibrahim Al Othman Altamimi: Fine of SR 30,000 and payment of SR 3,517.20 to the CMA account 8- Fahad bin Khamis bin Muhammad Al Hudayb: Fine of SR40,000 and payment of SR21,517 to the CMA account 9- Ahmad bin Saleh bin Muhammad Alsultan: Fine of SR40,000 and payment of SR8,634.71 to the CMA account 10- Muhammad bin Khamis bin Muhammad Al Hudayb: Fine of SR30,000 and payment of SR44,493.50 to CMA account 11- Abdulmohsen bin Abdulaziz bin Abdulrahman Alshuwaiman: Fine of SR. 50,000 12- Ziyad bin Hamad bin Zaid Alswaygh: Fine of SR. 30,000. 13-: Faisal bin Abdullah bin Muhammad Bin-Saedan: Fine of SR 20,000 The decision also included obliging the following investors to pay to the CMA account a total amount of SR152,702.06 for the illegal gains achieved in their investment portfolios that resulted from the violations committed by the convicted persons: Khalid bin Nasser bin Abdullah bin Muhaini, Abdulmohsen bin Abdulaziz bin Abdulrahman Alshuwaiman, Ziyad bin Hamad bin Zaid Alswaygh, Faisal bin Abdullah bin Muhammad Bin-Saedan. The convicts were involved in the manipulation of the shares of the following companies. Bank Aljazira, Saudi Arabian Mining Co. (MAADEN), Astra Industrial Group, United Wire Factories Co. (ASLAK), Seera Group Holding, Leejam Sports Co. (FITNESS TIME), SABIC Agri-Nutrients Co. (previously known as Saudi Arabian Fertilizer Company (SAFCO)), Saudi Ceramic Co., Savola Group, AYYAN Investment Co., Saudi Industrial Investment Group, Saudi Vitrified Clay Pipes Co., Tabuk Cement Co., National Medical Care Co. (CARE), Middle East Healthcare Co. (SAUDI GERMAN HEALTH), National Shipping Company of Saudi Arabia (BAHRI), Saudi Automotive Services Co. (SASCO), Arriyadh Development Co., Aldrees Petroleum and Transport Services Co. (ALDREES), Saudi Research and Media Group, United International Transportation Co. (BUDGET SAUDI), Saudi Electricity Co., Aljouf Cement Co., Saudi Telecom Co. (STC), Etihad Etisalat Co. (ETIHAD ETISALAT), The Company for Cooperative Insurance (TAWUNIYA), and Arabian Shield Cooperative Insurance Co. The Appeal Committee also ruled that 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 damages he/she suffered from due to these violations, provided that such claim is preceded by a complaint filed with the CMA in this regard. 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 the investors affected by such violations to apply to the CRSD to join the class action.
