Mobily’s former executives convicted of capital market law violation

The Appeal Committee for Resolution of Securities Disputes (ACRSD) convicted a number of Etihad Etisalat Co.’s (Mobily) former executives of violating the Capital Market Law, according to the General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD).

Mobily’s executives were charged of violations that led to a false and misleading impression about the value of Mobily’s stock. They stated incorrect data in the company’s financials for Q2, Q3, and Q4 of FY2013 and Q1, Q2 and Q3 of FY2014, which inflated the telecom’ revenue over these quarters.

Those impacted by these practices have the right to file a claim either individually or in a class action in line with the regulatory measures, provided that a complaint in this regard should be precedingly submitted to the Capital Market Authority (CMA).

The decision included:  

-Badr bin Saleh bin Hamoud Altarifi was fined SAR 300,000. He was banned from managing portfolios and working as an investment advisor for seven years, as well as working in companies whose shares are traded in Tadawul for seven years.

-Muhammad Hefni Mahmoud Thabet was fined SAR 120,000. He was banned from managing portfolios and working as an investment advisor for three year, as well as working in companies whose shares are traded in Tadawul three years.

-Khalid bin Omar bin Mohsen Alkaf was fined SAR 600,000. He was banned from managing portfolios and working as an investment advisor for seven years, as well as working in companies whose shares are traded in the Exchange for seven years.

-Thamer bin Muhammad bin Abdullah Alhosani was fined SAR 600,000. He was banned from managing portfolios and working as an investment advisor for seven years, as well as working in companies whose shares are traded in Tadawul for seven years.

-Ahmed Hussein Ali Abdulnabi was fined SAR 240,000. He was banned from managing portfolios and working as an investment advisor for five years, as well as working in companies whose shares are traded in Tadawul for five years.