Saudi CMA convicts 4 violators for fraud, manipulation

Saudi Arabia’s Capital Market Authority (CMA) has convicted four individuals for manipulation and fraud while trading shares of Aseer Trading, Tourism and Manufacturing Co., the Capital Market Authority (CMA) said in a statement on Tuesday.

The defendants were convicted in a lawsuit filed last month by the CMA, accusing them of violating the Capital Market Law and Market Conduct Regulations when trading Aseer shares during the period from Dec. 4, 2011 until March 14, 2012.

The violators were Abdulmohsn bin Mohammed bin Saleh Aldubaikhi, Bader bin Abdulmohsn bin Abdulrahman Almohisen, Ibrahim bin Abdulaziz bin Ali Alhnaya, and Mohammed bin Abdulaziz bin Ali Alhnaya.

The decision included the imposition of a number of penalties on the defendants as follows:

1) Abdulmohsn bin Mohammed bin Saleh Aldubaikhi

- Fine of SAR 100,000 imposed

- Ordered to pay SAR 738,914.60 for illegal gains in his investment portfolio

2) Bader bin Abdulmohsn bin Abdulrahman Almohisen

- Fine of SAR 100,000 imposed

- Ordered to pay SAR 37,060.60 for illegal gains in his investment portfolio

3) Ibrahim bin Abdulaziz bin Ali Alhnaya

- Fine of SAR 100,000 imposed

- Ordered him to pay SAR 79,241.90 for illegal gains in his investment portfolio

4) Mohammed bin Abdulaziz bin Ali Alhnaya

- Fine of SAR 40,000 imposed

- Ordered to pay SAR 20,858.65 for illegal gains in his investment portfolio

All four defendants were also prohibited from trading shares of Saudi-listed companies, whether in person or on behalf of others, for a period of three months.

The criminal case against a fifth defendant, Fahad bin Mohammed bin Abdulaziz Alhussiny, had lapsed with his death, the CMA said.

Separately, the CMA fined   Esmaeel Abdulkareem Yahya Al-Yahya SAR 50,000 for conducting securities business without obtaining a license, and  advising activities in exchange for cash subscriptions through Twitter and WhatsApp.