The Capital Market Authority announces that the Appeal Committee for the Resolution of Securities Disputes has issued its decision dated 18/7/1439H corresponding to 4/4/2018G on the lawsuit filed by The Public Prosecution (referred to it by the Capital Market Authority) against Bader bin Mohammed bin Saeed Alshahrani, Mohammed bin Saeed bin Abdullah Alshahrani, Saeed bin Ali bin Saeed Alghamdi, Hussain bin Jawad bin Subaih Alenzi, Hassan bin Mohammed bin Rashed Alnuaemi and Abdullatif  bin Nasser bin Hamad Alrashed. The verdict concluded with the conviction of the defendants of violating Article (49) of the Capital Market Law and Articles (2) and (3) of the Market Conduct Regulations when trading the shares of Saudi Indian Company for Cooperative Insurance (WAFA Insurance), during the period from 16/2/2014G until 17/3/2014G. These practices constituted manipulation and fraud and created a misleading and incorrect impression about the security of the mentioned company. The Appeal Committee decision included the imposition of a number of penalties on the defendants, detailed as follows:

First defendant: (Bader bin Mohammed bin Saeed Alshahrani)
Imposing a fine on him amounting to (30,000) Thirty Thousand Riyals.

Second defendant: (Mohammed bin Saeed bin Abdullah Alshahrani)
1) Imposing a fine on him amounting to (30,000) Thirty Thousand Riyals.
2) Obliging him to pay (831,163.50) Eight Hundred and Thirty One Thousand, One Hundred and Sixty Three Riyals and Fifty Halalas to the Capital Market Authority’s account for the illegal gains achieved in his investment portfolio.

Third defendant: (Saeed bin Ali bin Saeed Alghamdi)
 Imposing a fine on him amounting to (30,000) Thirty Thousand Riyals.

Fourth defendant: (Hussain bin Jawad bin Subaih Alenzi)
1) Imposing a fine on him amounting to (20,000) Twenty Thousand Riyals.
2) Obliging him to pay (1,255,528.25) One Million and Two Hundred and Fifty Five Thousand, Five Hundred and Twenty Eight Riyals and Twenty Five Halalas to the Capital Market Authority’s account for the illegal gains achieved in his investment portfolio.

Fifth defendant: (Hassan bin Mohammed bin Rashed Alnuaemi)
1) Imposing a fine on him amounting to (20,000) Twenty Thousand Riyals.
2) Obliging him to pay (736,354) Seven Hundred and Thirty Six Thousand, Three Hundred and Fifty Four Riyals to the Capital Market Authority’s account for the illegal gains achieved in his investment portfolio.

Sixth defendant: (Abdullatif bin Nasser bin Hamad Alrashed)
1) Imposing a fine on him amounting to (10,000) Ten Thousand Riyals.
2) Obliging him to pay (89,332.25) Eighty Nine Thousand, Three Hundred and Thirty Two Riyals and Twenty Five Halalas to the Capital Market Authority’s account for the illegal gains achieved in his investment portfolio.

The decision also obliged a number of investors to pay (2,304,324.25) Two Millions and Three Hundred and Four Thousand, Three Hundred and Twenty Four Riyals and Twenty Five Halalas to the Capital Market Authority’s account for the illegal gains achieved in their investment portfolios as a result of violating trade conducted by the convicted Bader bin Mohammed bin Saeed Alshahrani and Saeed bin Ali bin Saeed Alghamdi. 

The Capital Market Authority affirms on its devotion to apply the Capital Market Law and its Implementing Regulations as well as protecting the investors from illegal practices, and whoever is affected by these practices can file a suit for compensation to the committee as per Article (57) of the Capital Market Law, this must be preceded by a complaint filed to the CMA. 

(To view the security and the date on which the suspected trading occurred, click here)