Pursue Suspension of Shares 24/07/2011

On July 18th.2011, Jordan Securities Commission (JSC) Board of Commissioners decided to pursue trade suspension of United Group Holdings & Amwal Invest Companies until further Notice. Their decision was taken to fulfill the Commissions current investigations in possible violations of a number of Articles of the Securities Law particularly, the provisions of Article (107/A & D) related to submitting false or misleading data in any document filed with the Commission & any deception or misrepresentation relating to securities or any prohibited act relating to the licensed activities in accordance with the provisions of this Law. As well as, Article (108) related to trading in securities or influencing others to trade in such securities on the basis of inside information. Furthermore, the provisions of Article (109/A) related to effect any transaction in securities & finally, to fulfill the Commissions current investigations in possible violations of these two companies certified auditors or accountants, of the provisions of Article (107/C) related to certifying by an auditor or accountant of false or misleading financial statements or statements which are in violation of adopted accounting & auditing standards. In such case, the accountant or auditor, as the case may be, shall be liable for damages to any party suffering financial loss as a result of such false or misleading financial statements.
The Board of Commissioners also decided to address the Company General Controller & the Anti Corruption Commission of possible violations of the Board of Directors of Amwal Invest & United Group Holdings Companies. The Commission noticed upon reviewing these companies & people in charge, possible violations of the Securities Law that may be related to some practices & actions violating the enforced Companies & Sanctions Laws. The Commission fulfilled the required measures relevant to violations within its jurisdiction & referred violations relevant to the Companies Controller to the General Companies Controller to take proper actions by virtue of the provisions of the Law. The (JSC) provided the Anti Corruption Commission with the results reviewed concerning these companies, within the realm of cooperation & coordination between these two entities.
On March 23rd.2011, (JSC) took necessary measures to practice its duties as stated in the Securities Law. Measures taken included imposing fines on certain people verified to have violated the Securities Law. Their violation is represented in undertaking unlawful practices related to trading transactions in shares. They have made reciprocal trading transactions among their accounts thus, violating the provisions of Articles (107/D &109/B) of the Securities Law prohibiting any person to effect any transaction in securities causing any deception or misrepresentation relating to securities. The Commission pursued reviewing the status of Amwal Invest since the financial brokerage company subsidiary to it, is a financial services company subject to the Commissions’ surveillance & licensed by it. By the end of last year 2010, the Commission took a number of measures against this subsidiary company. Measures included, suspending company businesses/activities, allowing it merely to sell to company debtors & settling all accounts payables to clients. As well as, returning to the Securities Depository Center (SDC) all securities under the company control relevant to clients & obliging it to provide the Commission with a daily capital adequacy to view its status immediately.
It is worthy to mention, that (JSC) took several measures towards a number of financial brokerage offices due to financial problems mainly, for trading reasons of people having connections with Amwal Invest Company.
During February 2011 & due to suspicious trading, the Commission started reviewing the status of United Group Holdings Company. Suspicious trading resulted in severe decline of the company shares that required trading to be analyzed in the Commissions’ departments. This analysis indicated that trading of people connected with the company is available, as a result, on March 17th.2011 hearing of testimonies started. The Commission also noticed that violations of the following Laws are possible: the Companies, the Sanctions & the Securities Laws.
Therefore, the Commission addressed the General Company Controller & the Anti Corruption Commission of possible violations made by these companies of the Companies & the Sanctions Laws. Meanwhile, the Commission pursues investigating possible violations of the Securities Law to take necessary measures by virtue of the provisions of this Law.