The Capital Market Authority (CMA) has referred 17 suspects to the Public Prosecution, including former and current board members of Sinomi Retail (Fawaz Abdulaziz Alhokair & Co.), the CEO, several of the company's financial managers, and members of the audit team of the company's former auditor. They are suspected of violating the Capital Market Law and the Market Conduct Regulations, as well as the Companies Law, which is suspected to have been violated by several board members and the acting CEO. The Public Prosecution has filed the criminal case against the suspects with the Securities Disputes Settlement Committees.
The referral to the Public Prosecution came in accordance with the decision of the Capital Market Authority Board based on the results of the criminal inspection reached by the team formed by the Authority to carry out the criminal inspection procedures on the company and examine its accounts pursuant to paragraph (c) of Article Five of the Capital Market Law and Article Two Hundred and Seventy of the Companies Law, as the results of the criminal inspection showed the existence of suspicion of the involvement of some of the suspects in creating an incorrect and misleading impression regarding the value of the company’s security, in addition to some of them using the company’s funds and the powers they have against the interests of the company in order to achieve personal purposes and favor companies in which they have an interest.
The Authority affirms to all participants in the financial market that illegal practices involving fraud, deception, misrepresentation, and manipulation constitute a violation that exposes perpetrators to legal accountability and the imposition of penalties stipulated in the Financial Market Law, its implementing regulations, and the Companies Law. It emphasizes that it will not hesitate to pursue those manipulating the financial market by monitoring their transactions based on its powers under the Financial Market Law and the Companies Law, and its cooperation with relevant authorities, stemming from its responsibility to protect citizens and investors from unfair or unsound practices, and to work towards achieving fairness, efficiency, and transparency in securities transactions.
The General Secretariat of the Securities Disputes Resolution Committees will publicly announce the identities of violators on its website once violations are proven and final decisions are issued against them by the committees. Those harmed by these violations, once proven, have the right to file a lawsuit against the violators seeking compensation before the Securities Disputes Resolution Committees at the appropriate time, provided that a complaint is first submitted to the Authority regarding this matter.