Conviction of 24 Investors and a Real Estate Company for Violating the Capital Market Law and Its Implementing Regulations,Fining them More than 3.7 million, and Obligating 23 Convicted Individuals and Another Female Investor to Pay More than 1.2 million.

The Capital Market Authority (CMA) announces the issuance of two final decisions by the Appeal Committee for Resolution of Securities Disputes' (ACRSD) against 24 investors and a real estate company. The decisions included fining 23 investors of violating Article (49.a) of the Capital Market Law and Article (2.a) of the Market Conduct Regulations; and one investor and a real estate company violating Article (31) of the Capital Market Law as well as Article (5) of the Securities Business Regulations. The convicted individuals were fined more than SAR 2.7 million, and those convicted in the first decision, along with another female investor, were obligated to pay more than SAR 1.2 million in illegal gains derived from those violations.
According to the first final decision of the ACRSD, the following individuals were convicted: Amer bin Ahmad bin Hussein Al’enizi, Faris bin Lafi bin Marfu Alshammari, Nasser bin Hameed bin Awad Al’enizi, Walid bin Ahmad bin Saeed Alzahrani, Mansour bin Hameed bin Awad Al’enizi, Alian bin Turki bin Alian Alsubai’i, Fahad bin Hassan bin Muhammad ’Atin, Ziyad bin Muhammad bin Farwan Al’enizi, Muhammad bin Hameed bin Awad Al’enizi, Yasser bin Hameed bin Awad Al’enizi, Sultan bin Hameed bin Awad Al’enizi, Amer bin Mahidi bin Thani Al’enizi, Mona bint Ahmad bin Saeed Alzahrani, Awad bin Hameed bin Awad Al’enizi, Nawaf bin Madlul bin Mnawir Alshammari, Shaalan bin Awaad bin Hassan Alharbi, Bandar bin Mnawir bin Muzail Al’enizi, Hamad bin Nazal bin Muhammad Al’enizi, Tariq bin Muhammad bin Farwan Al’enizi, Bassam bin Obaid bin Ibrahim Al’enizi, Abdullah bin Qasim bin Ashban Al’enizi, Salman bin Hameed bin Awad Al’enizi, and Amer bin Saleh bin Bustan Al’enizi; of violating Article (49.a) of the Capital Market Law and Article (2.a) of the Market Conduct Regulations, for their act, individually and jointly, of entering purchase orders with the aim of influencing the price of share/unit, and entering purchase orders with the aim of influencing the price of share/unit then selling such shares/units, when trading the shares of several listed companies and units of a listed real estate investment fund, during the period between 03/01/2021 until 16/08/2022. Such acts and practices constituted manipulation and fraud, and created a false and misleading impression regarding the security of the Companies and Funds and they were all banned from trading, directly or indirectly, in the capital market, except through investment funds with capital market institutions, for a period of one year. Additionally, they were fined approximately one million Saudi Riyals and were obligated to pay more than SAR 1.21 million in illegal gains achieved in their investment portfolios as a result of the violations for which they were convicted. Furthermore, another female investor was obligated to pay SAR 74.9 thousand to the CMA’s account, against the illegal gains achieved in her portfolio that resulted from the illegal trading committed by the convicted person Ziyad bin Muhammad bin Farwan Al’enizi. 
The second final decision convicted Bandar bin Abdulrahman bin Hamdan Alghamdi and Bandar Abdulrahman Hamdan Alghamdi Real Estate Company for violating Article (31) of the Capital Market Law as well as Article (5) of the Securities Business Regulations, when they performed a securities business, represented in the activity of "Managing" by establishing and operating real estate investment funds. The decision also concluded with the conviction of Bandar bin Abdulrahman bin Hamdan Alghamdi of violating Article (17) of the Securities Business Regulations when advertising such act via his personal account on the social media platform (X) without obtaining a license from the CMA. The convicted parties were fined SAR 2.7 million.
The CMA explained that the final decisions of ACRSD came as a result of joint coordination and cooperation between the CMA and relevant concerned authorities, and in light of the public penal lawsuit filed by the Public Prosecution, referred to it by the CMA, against the investors for violating the Capital Market Law.
The CMA stresses the importance of investors' confidence in the capital market for its growth and prosperity. The CMA continuously monitors any violating behaviors, identifies the perpetrators, and processes the necessary procedures to impose deterrent penalties against them, in order to enhance the CMA's efforts aimed at creating an attractive investment environment for all categories of investors and safe from unfair or unsound practices or that involve fraud, cheating, misleading, deception or manipulation.
The General Secretariat of the Committee for Resolution of Securities Disputes (GS-CRSD) announced that any person affected by these violations addressed in the first final decision is entitled to file a compensation claim (as individual or class action) against the convicted persons with the Committee for Resolution of Securities Disputes (CRSD) for the damage he/she suffered from due to these violations. In addition, any person who has entered into an agreement or contract with the convicted person and entity in relation to the violation addressed in the second final decision is entitled to file a claim (as individual or class action) with the CRSD to request the rescission of the agreement or contract and the recovery of any money or other property paid or transferred under the agreement or contract, as per Article (60/b) of the Capital Market Law. It should be noted that, in both decisions, a complaint must first be submitted to the Capital Market Authority through the following link (File Complaint). Furthermore, 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
The CMA indicated that the GS-CRSD announced to the public on its website the identity of the violators after the violations and sanctions were proven and the final decisions were issued by ACRSD. The said decisions can be viewed through the following links:
Announcement of the GS-CRSD (First Final Decision) – Click here
Announcement of the GS-CRSD (Second Final Decision) – Click here