ACRSD issues SAR 1.2 bln fines on Dar Al Arkan traders for violations

Logo of Dar Alarkan Real Estate Development Co.

The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announced the issuance of the Appeal Committee for the Resolution of Securities Disputes' (ACRSD) final decision in the public penal case filed by the Public Prosecution against some traders of Dar Al Arkan Real Estate Development Co.’s stock, who violated the Capital Market Authority’s (CMA) securities trading rules.

Muhammad bin Abdullah bin Saleh Alsa'ab, Mdaehesh bin Muhammad bin Abdulrahman Almdaehesh, Khalid bin Ibrahim bin Ali Alsane', Saleh bin Muhammad bin Obaid Alrshoud, Ismail bin Saleh bin Muhammad Alhathloul, Muhammad bin Saleh bin Ibrahim Alhuraib, Sultan bin Abdulrahman bin Muhammad Aba Alkhail, Ahmad bin Ali bin Sulaiman Alyahya, Fahad bin Abdulaziz bin Sulaiman Alskeit, Abdulmalik bin Abdulaziz bin Sulaiman Alskeit, Dham bin Muhammad bin Hamoud Aldham, Abdullatif bin Abdulaziz bin Abdullah Alkanhal, Ali bin Saleh bin Ali Alothaim, Abdullah bin Muhammad bin Abdulkarim Alaqul, Ali bin Sulaiman bin Ali Alothman, Yazid bin Musaed bin Saud Alosaimi, and Fawaz bin Jarbou' bin Nasser Alqfari were all convicted in the case, which was referred to the CMA by the Public Prosecution.

The decision concluded with the conviction of the abovementioned individuals for violating Article (49/a) of the Capital Market Law, as well as Article (2/a) of the Market Conduct Regulations, when trading shares of Dar Al Arkan during the period between April 27, 2017, and Jan. 23, 2018, as well as the period between Feb. 18, 2018, and May 31, 2018.

Such acts and practices represent manipulation and fraud. They created a false and misleading impression of the securities of the said company. Violations were conducted through the violators’ portfolios or portfolios they manage by entering buy and sell orders, aiming to impact the stock price or closing price.

The decision included the imposition of a number of sanctions upon them according to the following:

First: Muhammad bin Abdullah bin Saleh Alsa'ab:

Imposing a fine upon him amounting to SAR 100,000.

Obliging him to pay to CMA account the amount of SAR 14.14 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six months, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of Six months.

Second: Mdaehesh bin Muhammad bin Abdulrahman Almdaehesh:

Imposing a fine upon him amounting to SAR 400,000.

Obliging him to pay to CMA account the amount of SAR 56.89 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Third: Khalid bin Ibrahim bin Ali Alsane':

Imposing a fine upon him amounting to SAR 400,000.

Obliging him to pay to CMA account the amount of SAR 66.136 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Fourth: Saleh bin Muhammad bin Obaid Alrshoud:

Imposing a fine upon him amounting to SAR 60,000.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six months, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of Six months.

Fifth: Ismail bin Saleh bin Muhammad Alhathloul:

Imposing a fine upon him amounting to SAR 375,000.

Obliging him to pay to CMA account the amount of SAR 19.355 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Sixth: Muhammad bin Saleh bin Ibrahim Alhuraib:

Imposing a fine upon him amounting to SAR 80,000.

Obliging him to pay to CMA account the amount of SAR 3.797 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six months, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of Six months.

Seventh: Sultan bin Abdulrahman bin Muhammad Aba Alkhail:

Imposing a fine upon him amounting to SAR 450,000.

Obliging him to pay to CMA account the amount of SAR 60.750 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Eighth: Ahmad bin Ali bin Sulaiman Alyahya:

Imposing a fine upon him amounting to SAR 900,000.

Obliging him to pay to CMA account the amount of SAR 50.715 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Ninth: Fahad bin Abdulaziz bin Sulaiman Alskeit:

Imposing a fine upon him amounting to SAR 375,000.

Obliging him to pay to CMA account the amount of SAR 117.223 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Tenth: Abdulmalik bin Abdulaziz bin Sulaiman Alskeit:

Imposing a fine upon him amounting to SAR 175,000.

Obliging him to pay to CMA account the amount of SAR 32.271 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six month, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of Six month.

Eleventh: Dham bin Muhammad bin Hamoud Aldham:

Imposing a fine upon him amounting to SAR 350,000.

Obliging him to pay to CMA account the amount of SAR 74.221 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Twelfth: Abdullatif bin Abdulaziz bin Abdullah Alkanhal:

Imposing a fine upon him amounting to SAR 120,000.

Obliging him to pay to CMA account the amount of SAR 10.341 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six month, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of Six month.

Thirteenth: Ali bin Saleh bin Ali Alothaim:

Imposing a fine upon him amounting to SAR 140,000.

Obliging him to pay to CMA account the amount of SAR 47.288 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six month, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of Six month.

Fourteenth: Abdullah bin Muhammad bin Abdulkarim Alaqul:

Imposing a fine upon him amounting to SAR 225,000.

Obliging him to pay to CMA account the amount of SAR 611,542, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of Six month, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of Six month.

Fifteenth: Ali bin Sulaiman bin Ali Alothman:

Imposing a fine upon him amounting to SAR 450,000.

Obliging him to pay to CMA account the amount of SAR 80.293 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Sixteenth: Yazid bin Musaed bin Saud Alosaimi:

Imposing a fine upon him amounting to SAR 550,000.

Obliging him to pay to CMA account the amount of SAR 79.773 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of One year, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of One year.

Seventeenth: Fawaz bin Jarbou' bin Nasser Alqfari:

Imposing a fine upon him amounting to SAR 925,000.

Obliging him to pay to CMA account the amount of SAR 83.11 million, against the illegal gains achieved in his portfolios.

Banning him from trading through direct or indirect purchase in the Saudi Exchange for a period of six month, excluding trading through investment funds with Authorized Persons.

Banning him from managing portfolios in the Saudi Exchange for a period of six month.

The decision also included obliging a number of investors to pay to CMA account a total amount of SAR 399.60 million, against the illegal gains achieved in their portfolios that resulted from the illegal trading transactions committed by Ismail bin Saleh bin Muhammad Alhathloul, Yazid bin Musaed bin Saud Alosaimi, Ahmad bin Ali bin Sulaiman Alyahya, Fawaz bin Jarbou' bin Nasser Alqfari and Sultan bin Abdulrahman bin Muhammad Aba Alkhail.

Furthermore, any person affected by these violations in this case is entitled to file a compensation claim (as individual or class action) with the CRSD for the damage he/she suffered from due to these violations, provided that such claim is preceded by a complaint filed with CMA on this regard, via the following link: (File Complaint).

However, the GS-CRSD will announce to the public on its website in case of registering any class action in order to enable the rest of investors affected by such violations to apply to the CRSD to join the class action.

To view the dates of trading and securities, click here