Saudi Arabia’s market regulator has fined Saudi contractor Mohammed al-Mojil Group (MMG) and sentenced two of its top executives to five years in prison.

The Capital Market Authority’s (CMA) Committee for the Resolution of Securities Disputes (CRSD), which judges securities cases in the kingdom, has fined MMG SR1.6bn ($427m) and recommended sentences for breaching rules relating to accumulated losses, news agency Reuters cited a representative for the family as saying.

The company’s founder Mohammad al-Mojil and his son Adel al-Mojil, the firm’s chairman, are the recipients of the jail sentence.

However, in a statement posted on its website, the CMA said the CRSD resolution has sentenced three people to jail terms ranging from three to five years. The statement did not name the individuals.

One of the convicted persons has to pay SR1.62bn to CMA’s account for the illegal profits achieved, according to the statement, which again did not name who will pay the fine. The violators are also barred from working in listed companies on the Saudi Stock Exchange (Tadawul) for a term ranging from five to 10 years.

CRSD has issued the resolution against the defendants for violating capital market law for conducting practices that “formed manipulation and fraud and created a misleading and incorrect impression’’ regarding the value of the company in the initial public offering (IPO) stage.

The regulator was investigating the board members of the firm, some of the company’s executives and certified public accountants for market rules violations committed during the period 2008-11.

The CRSD resolution, CMA said, was not final and the parties can appeal before The Appeal Committee for the Resolution of Securities Disputes (ACRSD) within 30 days.

MMG has not traded on the Saudi bourse since July 2012, when the CMA suspended its shares over losses accrued after it over-extended itself trying to take advantage of a construction boom in the kingdom.