Details of the condemnation of 3 violators of the financial market system and their fine of 500 thousand riyals

The Capital Market Authority announced the issuance of three definitive decisions, two of which are from the Appeals Committee and the third from the Securities Dispute Committee against three convicts to violate one of them, paragraph (a) of Article forty -nine of The financial market institutions are currently), and the third violation of the thirty -first article of the financial market system, and the fifth article of the Securities Business Regulations, and they imposed financial fines of (500) thousand riyals.
The authority stated that the Appeals Committee issued its first definitive decision to condemn Osama Wafik Tawfiq Asaad (Assistant Director of Investment Banking to the financial advisor to the Mohamed Al -Mojil Group Company during the stage of offering its shares for public subscription).
And that is after his responsibility was proven to participate with others – they were convicted of the decision of the Appeals Committee in disputes No. 1189/L. Q/2017 for the year 1438 AH, announced on the website of the Capital Market Authority on the date of 06/14/1440 AH corresponding to 09/02/2019 – about the neglect of the issuance bulletin for the first public subscription of the company of Mohamed Al -Mujeel Group “Al -company” on fundamental information represented in the presence of a decrease in The value of the projects existing with the company in the first quarter of 2008, which affected the initial evaluation price of the company’s share during the offering of its shares for public subscription.
A fine of 100,000 riyals was imposed on him, in addition to preventing him from managing the governor or working as an investment consultant for a period of five years, as well as preventing him from working in the bodies subject to the supervision of the Capital Market Authority for a period of five years as well.

Financial market

As for the second final decision, it included the condemnation of the Securities Dispute Committee for Badr bin Abdullah bin Hamad Al -Hammad (registered person) in violation of Article 24 of the list of persons licensed (the list of financial market institutions currently) and imposed a fine of 200 thousand riyals. For his capacity as the Chairman of the Board of Directors of the ninety -nine financial company (McCain Capital Company) – and his former executive position – in violation of the principle .
And that is by registering the ownership of the lands purchased by the company in his name without the presence of the company’s receiving financially from it, and for exploiting the company’s customers ’money because of its personal use by conducting banking transfers from the assembly account for the company’s customers with one of the banks to the company’s account in the same bank And then convert it later to his personal account with another bank, during the period from 01/15/2014 to 10/16/2019.

The decision also included preventing him from practicing mediation, managing the governor, and working as an investment consultant for a period of five years, in addition to preventing him from working in companies that trade their shares in the financial market for a similar period.

Capital market system

The Securities Appeals Committee condemned in the third peremptory decision, Muhammad bin Mahdi bin Saleh Al -Duraibi Al -Zahrani, by violating the thirty -first article of the financial market system, and the fifth article of the Securities Business Regulation, to practice it from the stock of securities represented in the activity of (advice).
And that is by submitting recommendations on shares listed in the US financial markets through the application of social media (WhatsApp) without obtaining a license from the Capital Market Authority, during the period from the date of 11/03/2021 to the date of 03/23/2022 AD, as it was imposed on it A fine of 200 thousand riyals.

The authority clarified that the decisions of the Appeals Committee in the final securities disputes came as a result of coordination and joint cooperation between the authority and the relevant authorities, and in light of the general criminal cases filed by the Public Prosecution and referred to it by the Capital Market Authority against the investors convicted of the first and third decisions, while the authority has established its call Against the investor convicted in the second case, for all of them violated the financial market system and its executive regulations.

Securities disputes

The authority stressed the importance of what the investor confidence represents in the financial market for its growth and development, as the authority works continuously to monitor any violating behaviors, control its perpetrators, and complete the necessary procedures to impose deterrent penalties against them, in order to enhance the efforts of the authority aimed at creating an attractive investment environment for all groups of investors and safe from practices other than Fair or improper, or that involve fraud, fraud, fraud, misleading or manipulation.
The General Secretariat of the Secretariat for Securities Disputes announced that the person affected by the violations are entitled to the first and second decisions, to apply to the separation committee with an individual or collective lawsuit to demand compensation for damage from these violations, but whoever concludes an agreement or a contract with the third convict regarding these violations, then He has the right to file an individual or collective lawsuit with the committee to demand the annulment of the agreement or the contract and the recovery of any other money or property that it paid or transferred under the agreement or contract, according to what is stipulated in paragraph (B) of Article Sixth of the Capital Market System.
Provided that the submission of individual or collective claims in any of the three decisions is previously submitted to the Capital Market Authority, knowing that the General Secretariat of the Chapter Committees will be announced to the public on its website when restricting any collective lawsuit so that the rest Collective.
The Capital Market Authority indicated that the General Secretariat of the Secretary of Securities Disputes announced to the public on its website the identity of violators in the three decisions after proving violations, penalties and the issuance of peremptory decisions.