SR17 million fines slapped on 16 individuals and companies convicted of violating Capital Market Law
RIYADH — The Committee for the Resolution of Securities Disputes, under the Capital Market Authority (CMA), has slapped fines amounting to more than SR17 million on 16 individuals and companies for violating the provisions of the Capital Market Law.
Nine officials of the Saudi Exports Development Authority were convicted and fined SR6.9 million for violations including recording misleading data in the annual financial statements for various periods and violating the Companies Law. The violations committed by the officials included recording misleading data by the executive management in the annual financial statements. This resulted in inflating the company's revenues by recognizing revenue from a deal with an institution, amounting to SR12 million, without meeting the recognition requirements in accordance with the accounting and auditing standards approved by the Saudi Organization for Certified Public Accountants (SOCPA).
In other cases, a company and the three persons were fined SR4.1 million. Two convicted persons and other investors were also ordered to pay a fine of SR 5.91 million, while another convicted person was sent to jail for 90 days. The CMA explained that these actions and practices constituted manipulation and fraud, creating a misleading and incorrect impression regarding the securities of the mentioned companies.
A fine of SR1.675 was imposed on the convicted Abdulrahman bin Saleh Al-Rashed, in addition to requiring him to pay SR1.252 million for the illicit gains made on his investment portfolio and SR2.261 million for the illicit gains made on the investment portfolios of his two minor children.
Additionally, a fine of SR230,000 was imposed on the convicted Nasser bin Abdulaziz Al-Turki, along with an obligation to pay SR538,000 for the illicit gains obtained from his investment portfolio. Other investors were also required to pay SR1.864 million for illicit gains obtained from their investment portfolios, which resulted from the violative trades committed by Abdulrahman bin Saleh Al-Rashed.
The committee convicted Ammar Salem Bakhriba, Elmar Capital, and Elmar Financial Company of violating Article 31 of the Capital Market Law and Article 5 of the Securities Business Regulations. Bakhriba engaged in securities activities, including management, by offering and managing an investment fund and receiving clients' funds for investment in that fund. Elmar Capital and Elmar Financial Company also participated in this activity by managing the fund and receiving clients' funds for investment in it, in exchange for a percentage of the invested amounts, without obtaining a license from the Capital Market Authority. The decision included imposing a number of penalties on them. Ammar Salem Bakhriba was sentenced to 90 days in prison and fined SR1 million, while Elmal Capital was fined SR1million.
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