24.3.2016, 11:23 | Autor: Liquidpoker.net |
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doporučit článekAmaya's CEO, David Baazov, officialy charged with insider trading. Stock price drops 21%.
Canadian authorities, Quebec’s security regulator, the Autorité des marchés financiers (AMF), has now officially filed 23 charges in an insider trading investigation into Montreal-based Amaya Inc.’s acquisition of Oldford Group Ltd., the owner of PokerStars that happened in 2014 and was worth $4.9bln.
Amaya’s CEO and founder David Baazov is facing five charges, “for aiding with trades while in possession of privileged information, influencing or attempting to influence the market price of the securities of Amaya Inc., and communicating privileged information” , as we can read in the official press release.
Two more people connected to Baazov are also facing charges: Benjamin Ahdoot, a childhood friend of Baazov, and Yoel Altman, a long-time adviser to Amaya, are facing charges “for trading while in possession of privileged information and influencing or attempting to influence the market price of the securities of Amaya.”
Three more firms "Diocles Capital Inc.", "Sababa Consulting Inc." and "2374879 Ontario Inc." are also facing similar charges.
The AMF also announced it executed search warrants and obtained freeze and cease-trade orders against 13 other people, including Mr. Baazov’s brother, Josh Baazov. The AMF accuses the 13 of trading on inside information about potential mergers and acquisitions involving Amaya. The AMF alleges they made a profit of about $1.5-million on the trades between 2011 and 2016.
Baazov has issued an official statement: "These allegations are false and I intend to vigorously contest these accusations" said Mr. Baazov in the release. "While I am deeply disappointed with the AMF's decision, I am highly confident I will be found innocent of all charges."
Amaya also released an offical statement, backing their CEO and assuring everyone the case won't have any effect on the company:
"Amaya does not anticipate the charges will have any impact on the management or day-to-day affairs of the operating business. Operations continue as usual and there will be no change to the PokerStars or Full Tilt product offerings, either in customer experience, player fund security or game integrity. Amaya will continue to communicate with its regulators and does not currently anticipate any material negative impact on its current or potential licenses, approvals or partnerships as a result of the allegations against Mr. Baazov.
“David Baazov has the full support of the independent members of the board,” said Dave Gadhia, Amaya's Lead Director and independent board member, and the former Executive Vice Chairman and CEO of Gateway Casinos & Entertainment Inc. “As noted previously, Amaya conducted an external internal review, supervised by its independent board members with the assistance of external legal counsel from Osler, Hoskin & Harcourt LLP in Canada and Greenberg Traurig LLP in the U.S., which thoroughly reviewed the relevant internal activities surrounding the Oldford Group acquisition. This review found no evidence of any violations of Canadian securities laws or regulations. The independent members of the board received and reviewed the information and concluded that no action should be taken. We have not been provided with any new information upon which the AMF’s allegations of infractions are based.”
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