The Saudi Stock Exchange (Tadawul) has convicted and fined 15 violators more than 22.7 million riyals
The Capital Market Authority announced the issuance of two final decisions by the Appeals Committee for Securities Disputes against 15 violators, for violating Article 49 of the Capital Market Law and Article 2 of the Market Conduct Regulations, in addition to convicting one of them of violating Article 31 of the Capital Market Law and Article 5 of the Securities Business Regulations; and fining the convicts more than 10.7 million riyals, and obligating them and other investors to pay more than 12 million riyals for the illegal gains achieved from those violations.
Fraud, manipulation, and deception
According to the first Appeals Committee decision, the following individuals were found guilty of violating Article 49 of the Capital Market Law and Article 2 of the Market Conduct Regulations: Hassan bin Abdulkarim bin Ibrahim Al-Muayouf, Shahd bint Ghadeer bin Saleh Al-Rasheed, Saleh bin Ghadeer bin Saleh Al-Rasheed, Latifa bint Fawzan bin Abdulrahman Al-Sulaiman, Imran bin Mohammed bin Imran Al-Omran, Reem bint Mohammed bin Imran Al-Omran, Afnan bint Mohammed bin Imran Al-Omran, Ahmed bin Saad bin Abdullah Al-Huwaimeel, Noura bint Abdullah bin Saad Al-Huwaimeel, Mohammed bin Abdullah bin Mohammed Al-Houshan, Ahmed bin Mohammed bin Abdullah Al-Houshan, Abdullah bin Mohammed bin Abdullah Al-Houshan, Omar bin Mohammed bin Abdullah Al-Houshan, Khaled bin Ibrahim bin Abdullah Al-Juraibi, and Mohammed bin Nasser bin Mohammed bin Imran, when trading in the shares of the following listed companies: Integrated Insurance Company (formerly Allianz Saudi Fransi Cooperative Insurance Company), Saudi Arabian Cooperative Insurance Company (SAICO), Arab Cooperative Insurance Company (Arabian Insurance), and [unclear - possibly "Company Name]" Al-Saqr Cooperative Insurance Company (Al-Saqr Insurance), United Cooperative Insurance Company (United Insurance), and Chubb Arabia Cooperative Insurance Company (Chubb), during the period from 8/30/2021 to 7/6/2022; as these actions and practices constituted manipulation and fraud and created a misleading and incorrect impression regarding the securities of the aforementioned listed companies. Their violation consisted of entering purchase orders through their investment portfolios or the portfolios they manage with the aim of influencing the share price, some of which were linked to sell orders.
Penalties for those convicted
The second decision condemned Khalid bin Ibrahim bin Abdullah Al-Juraibi for violating Article 31 of the Capital Market Law and Article 5 of the Securities Business Regulations, for practicing a securities business activity represented by the activity of (management), through his management of two investment portfolios without obtaining a license from the Capital Market Authority.
The two decisions included imposing a number of penalties on the convicts, including imposing varying financial fines that totaled more than 10.7 million riyals, and obligating 13 convicts to pay more than 6.7 million riyals for the illegal gains achieved on their investment portfolios. Meanwhile, the Appeals Committee for Securities Disputes prohibited the convict Khalid bin Ibrahim bin Abdullah Al-Juraibi from trading directly or indirectly in the financial market for five years, in addition to prohibiting him from practicing brokerage or portfolio management, or working as an investment advisor for five years.
The committee also obligated a number of investors to pay more than 5.5 million riyals for the illicit gains achieved on their investment portfolios, resulting from the illegal trading committed by the convicted individuals Khalid bin Ibrahim bin Abdullah Al-Juraibi, Imran bin Muhammad bin Imran Al-Umran, and Muhammad bin Nasser bin Muhammad bin Imran.
Monitoring of inappropriate behaviors
The Capital Market Authority explained that the two final decisions of the Appeals Committee for Securities Disputes came as a result of coordination and joint cooperation between the Authority and the relevant concerned parties, and in light of the public criminal case filed by the Public Prosecution and referred to it by the Authority against the investors for violating the Capital Market Law.
The Authority affirms the importance of investor confidence in the financial market for its growth and development, as it continuously monitors any violations, apprehends perpetrators, and completes the necessary procedures to impose deterrent penalties on them, in order to strengthen its efforts towards creating an attractive and safe investment environment free from unfair practices or practices involving deception or manipulation.
Claim for compensation
For its part, the General Secretariat of the Committees for the Resolution of Securities Disputes announced that those harmed by these violations have the right to submit an individual or collective lawsuit to the Committee for the Resolution of Securities Disputes against the convicted parties to claim compensation for the damage caused by these violations. Also, anyone who entered into an agreement or contract with the convicted Khalid bin Ibrahim bin Abdullah Al-Juraibi regarding the violation of Article 31 of the system has the right to submit a lawsuit to demand the termination of the agreement or contract and the recovery of any funds or other assets that he paid or transferred under the agreement or contract, in accordance with what is stipulated in Paragraph (b) of Article 60 of the Capital Market Law, provided that this is preceded in either of the two decisions by submitting a complaint to the Authority in this regard. It should be noted that the General Secretariat of the Committees for the Resolution of Securities Disputes will announce to the public on its website when registering any collective lawsuit so that the rest of the investors harmed by the same violations can submit a request to the Committee to join the collective lawsuit.
The Authority indicated that the General Secretariat of the Committees for the Resolution of Securities Disputes announced to the public on its website the identity of the violators after the violations and penalties were proven and the final decisions were issued by the Appeals Committee for Securities Disputes.
The Capital Market Authority announced the issuance of two final decisions by the Appeals Committee in Securities Disputes against 15 violators for violating Article 49 of the Capital Market Law and Article 2 of the Market Conduct Regulations. Additionally, one of them was convicted of violating Article 31 of the Capital Market Law and Article 5 of the Securities Business Regulations; The convicted parties were fined more than 10.7 million riyals and were obligated, along with other investors, to pay more than 12 million riyals for the illegal gains realized from these violations.
Fraud, Manipulation, and Deception
According to the first decision of the Appeals Committee, the following individuals were convicted: Hassan bin Abdulkarim bin Ibrahim Al-Maiouf, Shahd bint Ghadeer bin Saleh Al-Rasheed, Saleh bin Ghadeer bin Saleh Al-Rasheed, Latifa bint Fawzan bin Abdulrahman Al-Sulaiman, Imran bin Muhammad bin Imran Al-Imran, Reem bint Muhammad bin Imran Al-Imran, Afnaan bint Muhammad bin Imran Al-Imran, Ahmad bin Saad bin Abdullah Al-Huwail, Nora bint Abdullah bin Saad Al-Huwail, Muhammad bin Abdullah bin Muhammad Al-Hawshan, Ahmad bin Muhammad bin Abdullah Al-Hawshan, Abdullah bin Muhammad bin Abdullah Al-Hawshan, Omar bin Muhammad bin Abdullah Al-Hawshan, Khalid bin Ibrahim bin Abdullah Al-Jarwi, and Muhammad bin Nasser bin Muhammad bin Imran, for violating Article 49 of the Capital Market Law and Article 2 of the Market Conduct Regulations while trading shares of the following listed companies: Integrated Insurance Company (formerly Allianz Saudi French Cooperative Insurance), Saudi Arabian Cooperative Insurance Company (SAICO), Arab Cooperative Insurance Company (Arab Insurance), Al-Saqr Cooperative Insurance Company (Al-Saqr Insurance), United Cooperative Insurance Company (United Insurance), and T'Chubb Arab Cooperative Insurance Company (T'Chubb), during
