Investment firm, 3 persons fined on violating Capital Market Law

The Capital Market Authority (CMA) imposed a fine on an investment company and three investors for violating the Capital Market Law.
 
The company and the three persons were fined SAR 4,1 million. Two convicted persons and other investors were also ordered to pay a fine of SAR 5.91 million, while another convicted person was sent to jail for 90 days.

The CMA explained that these actions and practices constituted manipulation and fraud, creating a misleading and incorrect impression regarding the securities of the mentioned companies.

A fine of SAR 1.675 riyals was imposed on the convicted Abdulrahman bin Saleh Al-Rashed, in addition to requiring him to pay SAR 1.252 million for the illicit gains made on his investment portfolio and SAR 2.261 million for the illicit gains made on the investment portfolios of his two minor children.

Additionally, a fine of SAR 230,000 was imposed on the convicted Nasser bin Abdulaziz Al-Turki, along with an obligation to pay SAR 538,000 for the illicit gains obtained from his investment portfolio.

Other investors were also required to pay SAR 1.864 million for illicit gains obtained from their investment portfolios, which resulted from the violative trades committed by Abdulrahman bin Saleh Al-Rashed.

As for the second final ruling, it included the conviction of both Ma’na Investment Co. and Faisal bin Saad bin Mubarak Al-Qarnain Al-Dosari, in his capacity as its Chairman. They were found guilty of engaging in securities-related activities, specifically dealing and arranging, and the company publicly advertised these activities by signing agreements with "Twenty Sixty Agricultural Company" and "Mutqin Delivery for Parcel Transport Establishment." These agreements involved Ma’na Investment Company committing to manage the IPO process for these entities after their legal transformation, completing capital increase procedures, securing investors, meeting with potential subscribers, collecting subscription funds, and receiving payments for these services—all without obtaining a license from the Capital Market Authority.

As a result, the Appeal Committee for Securities Disputes imposed a total fine of 1.5 million riyals on the company and a fine of SAR 750,000 on Faisal bin Saad Al-Dosari, along with a 90-day prison sentence.

The authority clarified that the final rulings issued by the Appeal Committee for Securities Disputes resulted from joint coordination and cooperation between the authority and relevant entities, based on public criminal cases filed by the Public Prosecution following referrals from the Capital Market Authority, due to violations of the Capital Market Law and its implementing regulations.