Al Mojil former execs convicted by CMA over illegal profit

Several of Mohammad Al-Mojil Group’s (MMG) board members and accountants, who served between 2008 and 2011, were found guilty last Wednesday of violating market regulations during the company’s initial public offering (IPO), the Capital Market Authority (CMA) said in a statement on Saturday.

The penalties imposed by the Saudi Committee for the Resolution of Securities Disputes (CRSD) included paying the CMA SAR 1.6 billion in illegal profit gained from the difference between the offering price and the stock’s value.

In addition, a fine of SAR 300,000 was imposed on each individual, while three offenders were sentenced to imprisonment between three and five years. 

The offenders were also banned from working in listed companies for a period between five and ten years.

The CMA added that MMG’s acting certified public accountants were banned from providing their services for authorized persons, or any securities’ issuer for two years.

The offenders can appeal this decision before the CRSD within 30 days.