Details of the condemnation of two companies and an investor and their fines 8.9 million riyals, and 3 convicted prisoners

The Capital Market Authority has announced the issuance of two definitive decisions from the Appeals Committee in Securities Disputes against two Malita and Investors, and a number of members of the Board of Directors of a listed company and its executive management and members of the Review Committee and its external references, by condemning the two financial companies and investing in violation of Article (31) of, and the fifth article of the Securities Business Regulations.
The decision also included condemning a number of members of the Board of Directors, Executive Administration, members of the Review Committee, and the external references of the company listed in violating paragraph (a) of Article (211) of the companies system issued by Royal Decree No. (M / 3) and the date of 01/28/1437 AH, and imposing fines on the 12 convicts with a total of 8.9 million riyals, and three of them were imprisoned for periods ranging between 3 and 6 months.

According to the Appeals Committee, the first peremptory decision condemned Ammar bin Salem bin Ahmed Bakhrabah, Elmar Capital, and Emmar Financial Company, for Ammar bin Salem bin Ahmed Bakhraba to practice a work of securities and the activity of (administration) through offering and management of an investment fund, receiving customer funds to invest in that fund, and the participation of Elmar Capital and the Emmar Financial Company in Practicing that activity by managing that fund and receiving customer money to invest in it, in exchange for obtaining a percentage of the investments invested, without obtaining a license from the Capital Market Authority.
The committee imposed a fine on the three convicts of one million riyals on each of them, with a total of 3 million riyals, and the prisoner Ammar bin Salem bin Ahmed Bakhibra was imprisoned for a period of 90 days.

Securities disputes

As for the second final decision, it included the condemnation of the Appeals Committee in a number of employees of the Saudi Industrial Export Company “the company”, who are: Hatem bin Hamad bin Abdullah Al -Suhaibani (Chairman of the Board of Directors), Abdullah bin Abdulaziz bin Abdullah Al -Mishaal (member of the Board (Member of the Board of Directors and member of the Review Committee).
The decision also included; Muhammad bin Azzam bin Muhammad Al -Shuwayer (member of the Review Committee), Mahmoud Muhammad Mukhtar Mitwalli (Financial Director), Ahmed Hassan Al -Banna Ibrahim (Director of Review at the Foreign References, and Director of the “Company” accounts in a later period), as well as against the Saudi Group for Accounting and Auditing Company, Al -Jasser and Al -Dakhil (external references).
This is due to the evidence that the executive administration has registered misleading data in the annual financial statements ending on 12/31/2019 AD, the initial financial statements ending on 03/31/2020 AD, and the initial financial lists ending on 06/30/2020 AD, which led to the amplification of the “company” revenues, by admitting that a deal with one of the institutions at an amount of (12,356,508) riyals, without The conditions for recognizing it in accordance with the accounting and review standards approved by the Saudi Commission for Auditors and Accountants, and the participation of the review committee by registering misleading data in the initial financial statements ending on 06/30/2020 AD, by recognizing the referral of the deal referred to without fulfilling the conditions for recognizing it in accordance with the accounting and audit standards approved by the Saudi Authority for auditors and accountants.
And the neglect of the CEO and member of the Board of Directors to include the initial financial statements ending on 03/31/2020 AD, and the initial financial statements ending on 06/30/2020 AD, a fundamental incident related to the deal referred to with the intention of hiding the financial position of the company, and neglecting the board of directors to include the financial statements ending on 06/30/2020 AD, a fundamental incident related to the deal referred to with the intention of hiding the financial position The company, the Board of Directors and the review committee delayed the dealing of the deal in the initial financial statements ending on 03/31/2020 AD, and the initial financial statements ending on 06/30/2020 AD, despite the presence of doubts about the procedures of the deal, as they were only addressed in the initial financial statements ending on 09/30/2020 AD.
And the participation of the external auditor and his review manager and the director of the company’s accounts in registering misleading data in the annual financial statements ending on 12/31/2019 AD, and the initial financial lists ending on 03/31/2020 AD, and the external references record misleading data in his report submitted to the General Assembly of the company, by including an acknowledgment that the financial statements of the company “are subjected to justice from all the fundamental aspects and the unified financial center The company and its financial flows in accordance with the international standards of approved financial reports.