In a decisive move against financial misconduct, Saudi Arabia’s Capital Market Authority (CMA) has levied significant fines and imposed jail terms on three executives from Abdullah A. M. Al-Khodari Sons Co. for serious violations of the Capital Market Law. The penalties come as part of the CMA’s crackdown on improper financial reporting and market manipulation.
The three individuals, including the CEO, CFO, and Director of the Financial Department, were found guilty of inflating the revenues of multiple construction projects in the company’s financial records from 2010 to 2017. The misrepresentation involved overstating the costs of projects to inflate completion percentages, a violation of both the Capital Market and Companies Law.
Fawaz bin Abdullah bin Abdulmohsen Alkhodari, the company’s CEO, received the harshest punishment: a six-month prison sentence along with a hefty fine of SR 3.65 million. The penalty was split into SR 3.25 million for breaching the Companies Law and SR 400,000 for violating the Capital Market Law. The CEO also faces a three-year ban from holding any position in publicly traded companies.
His colleagues, Sohail Sa’eed Mohammed Sa’eed, the Financial Department director, and Kailash Nath Sadangi, the CFO, were fined SR 100,000 and SR 200,000 respectively and also banned from working in listed firms for three years.
These actions serve as a stern reminder of the CMA’s commitment to maintaining transparency and accountability in Saudi Arabia’s financial markets.
