CRSD convicts violators of Capital Market Law, fines them

Logo of General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD)

The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announced the issuance of the Committee for Resolution of Securities Disputes' (CRSD) final decision, dated Sept. 14, 2023, in the public penal case filed by the Public Prosecution against Osama bin Abdulrahman bin Ateeq Alateeq, Abdulsalam bin Ali bin Hassan Almatar, Abdulilah bin Muhamad bin Fahad Alqassim, Turki bin Nejr bin Sahl Alotaibi, Nawaf bin Bader bin Bandar Alharbi, Ahmad bin Fahad bin Sahl Alotaibi and Ibrahim bin Nasser bin Abdulaziz Alshaiban.

The decision stipulated the imposition of fines totaling SAR 2.55 million for violating the Capital Market Law as well as the market conduct regulation, according to a statement.

Some of the violators was also banned from trading Tadawul-listed companies and from practicing brokerage business, managing portfolios or working as an investment advisor for five years. Furthermore, Alateeq was obliged to pay to CMA a total of SAR 980,104 against the illegal gains achieved in his portfolios.

Furthermore, any person who has entered into an agreement or contract with the convicted person in relation to these violations is entitled to file a claim with the CRSD to request agreement termination and the recovery of any money or assets exchanged in turn, as per Article (60/b) of the Capital Market Law. This is provided that such a claim is preceded by a complaint filed with the CMA in this regard.

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.