Today, Thursday, the General Secretariat of the Committees for the Settlement of Securities Disputes in Saudi Arabia announced the issuance of the final decision of the Appeal Committee for Securities Disputes in the general criminal case filed by the Public Prosecution and referred to it by the Capital Market Authority against Ahmed bin Shallah bin Munir Al-Harbi.
The General Secretariat stated, in a statement, that the decision’s pronounciation resulted in convicting the aforementioned of violating Article 49 of the Capital Market Law and Article Eight of the Market Conduct Regulations, when trading the shares of 20 companies.
The list of companies included Basic Chemical Industries Company, Textile International Trading Company, Seera Holding Group, Al Lujain Holding Company, Saudi Paper Manufacturing Company, Al Babtain Energy and Communication Company, Zahrat Al Waha Trading Company, Al Kathiri Holding Company.
Eastern Province Cement Company, United Electronics Company, Middle East Healthcare Company, Dur Hospitality Company, L’azurde Jewelery Company, Saudi Automotive Services and Equipment Company, Fitaihi Holding Group, Andalus Real Estate Company, Malath Cooperative Insurance Company, Saudi Arabian Cooperative Insurance Company, Ahlia Company For Cooperative Insurance, the Arab Cooperative Insurance Company.
She added that this was during the period from August 26, 2020, until September 28, 2020.
The General Secretariat explained that these actions and practices constituted manipulation and fraud, and created a misleading and incorrect impression regarding the securities of the aforementioned companies, due to his purchase, through his investment portfolio, of the shares of a number of listed companies and promoting them from his account on the social networking site “Twitter”. By the identifier (the pedigree hunter) with the intent of urging others to buy or sell in the shares of those companies, and then enter sell orders after the share price was affected by an increase.
The decision included imposing a number of penalties on him, including imposing a fine of 120,000 riyals on him, and obligating him to pay an amount of about 173.5 million riyals to the account of the Capital Market Authority, in return for the illegal gains made on his investment portfolio.
It indicated that the person harmed by the violations in question has the right to file an individual or collective lawsuit with the adjudication committee to claim compensation for the damage from these violations, provided that a complaint is submitted to the Capital Market Authority in this regard.
Note that the General Secretariat of the Classification Committees will announce to the public on its website when any class action is registered so that the rest of the investors affected by the same violations can apply to the committee to join the class action.
Unlicensed business
In a separate statement, the General Secretariat of the Committees for the Resolution of Securities Disputes announced the issuance of the final decision of the Committee for the Resolution of Securities Disputes in the general criminal case filed by the Public Prosecution and referred to it by the Capital Market Authority Sultan bin Awad bin Radda Al-Thaqafi.
She said that the decision’s wording resulted in convicting the aforementioned of violating Article (31) of the Capital Market Law and Article (Five) of the Securities Business Regulations, for practicing two securities business, represented in (advice) and (management) in the Saudi Stock Exchange, for having submitted Recommendations on the shares of companies listed on the Saudi stock market, in addition to providing investment portfolio management services, in return for annual financial contributions, without obtaining a license from the Capital Market Authority, and the decision included imposing a fine of 30,000 riyals on him.
She explained that whoever concluded an agreement or contract with the convict in connection with this violation has the right to file an individual or group lawsuit with the committee to demand the termination of the agreement or contract and the recovery of any money or other property he paid or transferred under the agreement or contract as stipulated in paragraph (b) of Article Sixty years of the Capital Market Law, provided that a complaint is submitted to the Capital Market Authority in this regard.
The General Secretariat of the Adjudication Committees will announce to the public on its website when any class action is registered, so that the rest of the investors who have concluded an agreement or contract with the convict can apply to the committee to join the class action.
