Thimar ex-CEO fined SAR 3.25M, faces 90-day jail for Companies Law breach

One of Thimar’s branches

The Capital Market Authority (CMA) said the Appeal Committee for Resolution of Securities Disputes (ACRSD) issued a final decision against Sari Al-Mayouf, former board member and CEO of Thimar Development Holding Co., convicting him of violating the Companies Law.

The decision included obligating the investor to pay a penalty of SAR 3.25 million and imprisoning him for 90 days.

Al-Mayouf was convicted of using Thimar's funds against its interests to achieve personal goals and favoring one company with which he has interests. This was through transferring the funds to the bank account of one establishment, whose owner is in a friendly and commercial relationship with Al-Mayouf.

However, the transfers were not documented. In addition, such establishment transferred a portion of the amounts to a company with which the convicted person has interests, without the existence of any justification of the transfers.

The ACRSD's decision came as a result of joint coordination and cooperation between the CMA and the relevant concerned authorities and in light of the public penal lawsuit filed by the Public Prosecution, referred to it by the CMA, against the violator.

The CMA stresses the importance of investor confidence in the capital market for its growth and prosperity.

The market regulator continuously monitors any violating behaviors of the Capital Market Law, its Implementing Regulations, and the regulations enforced by the CMA. It identifies the perpetrators and takes the necessary procedures to impose deterrent penalties against them.

The market regulator also aims to create an attractive and safe investment environment for all categories of investors.

Any person affected by the violation, in this case, is entitled to file a compensation claim (as individual or class action) against the convicted person with the CRSD for the damage he suffered from the violation. However, this should be preceded by a complaint filed with the CMA in this regard.

The General Secretariat of the Committee for Resolution of Securities Disputes (GS-CRSD) will announce on its website in case of registering any class action to allow other investors affected by such violations to apply to the CRSD and join the class action.