RIYADH — Saudi Arabia’s Capital Market Authority has referred 17 suspects linked to Cenomi Retail to the Public Prosecution over suspected violations of the Capital Market Law, Market Conduct Regulations and Companies Law.
The suspects include former and current board members, a chief executive officer, several financial managers at the company, and members of the audit team at the company’s former external auditor.
The CMA said the Public Prosecution has already filed a penal case against the suspects before the Committee for Resolution of Securities Disputes.
According to the authority, the referral followed a decision by the CMA board based on the findings of a forensic inspection carried out by a specialized team appointed under Article 5(c) of the Capital Market Law and Article 270 of the Companies Law.
The forensic review found suspected involvement by some of the accused in creating “a false and misleading impression” regarding the value of the company’s securities.
The CMA also said the investigation uncovered suspected misuse of company funds and authority for personal interests and for the benefit of companies in which some suspects allegedly had interests.
The authority stressed that practices involving fraud, deception, misleading information and market manipulation are serious violations that expose perpetrators to regulatory accountability and penalties under Saudi capital market and corporate laws.
The CMA reaffirmed its commitment to monitoring transactions, pursuing market manipulators and protecting investors from unfair or improper practices in coordination with relevant authorities.
The regulator added that the General Secretariat of the Committees for Resolution of Securities Disputes will publish the identities of violators once final rulings are issued.
The CMA also noted that investors affected by the alleged violations may seek compensation through the Committee for Resolution of Securities Disputes after first submitting complaints to the authority.
Source: Saudi Gazette