The Saudi Arabia Capital Markets Authority announced that the Appeal Committee for the Resolution of Securities Disputes has issued two final decisions convicting 15 individuals of market manipulation and fraud in shares of six listed insurance companies, and convicting one of them separately for managing portfolios without a licence. The decisions impose more than SAR 10.7 million in fines and require the convicted persons, together with other investors, to repay more than SAR 12 million in illegal gains. The manipulation case covers trading in Mutakamela Insurance, Saudi Arabian Cooperative Insurance Co., Arabia Insurance, Al Sagr Insurance, United Cooperative Assurance and CHUBB Arabia between 30 August 2021 and 6 July 2022. The misconduct involved entering purchase orders through their own portfolios or portfolios they managed to influence share prices, with some orders linked to sale orders, creating false and misleading impressions about those securities. Of the recovery amount, more than SAR 6.7 million was imposed on 13 convicted persons and more than SAR 5.5 million on investors whose portfolios benefited from trades carried out by Khaled bin Ibrahim bin Abdullah Aljeraiwi, Omran bin Muhammad bin Omran Alomran and Muhammad bin Nasser bin Muhammad bin Omran. Aljeraiwi was also convicted of unlicensed portfolio management for managing two portfolios without CMA authorisation, barred from trading on the exchange for five years, and banned for five years from brokerage, portfolio management and investment advisory activities. The General Secretariat of the Committees for Resolution of Securities Disputes said affected investors may file compensation claims individually or as a class action against the convicted persons. Any person who contracted with Aljeraiwi in relation to the unlicensed management activity may also seek rescission and recovery under Article 60(b) of the Capital Market Law. Such claims must first be preceded by a complaint to the CMA, and the Secretariat will announce any filed class action on its website so other affected investors can apply to join.
Saudi Arabia Capital Markets Authority2026-05-14
Saudi Arabia Capital Markets Authority announces final convictions of 15 market manipulators with more than SAR 10.7 million in fines and over SAR 12 million repayment of illegal gains
The Saudi Arabia Capital Markets Authority reported that the Appeal Committee for the Resolution of Securities Disputes issued two final decisions convicting 15 individuals of market manipulation and fraud in shares of six listed insurance companies, and one individual of unlicensed portfolio management. The decisions impose more than SAR 10.7 million in fines, require repayment of over SAR 12 million in illegal gains, and bar the unlicensed manager from trading and certain licensed activities for five years. Affected investors may seek compensation individually or via class action, and those who contracted with the unlicensed manager may seek rescission and recovery under Article 60(b) of the Capital Market Law.