Report: Amaya Gaming CEO charged with insider trading
The CEO of Amaya Gaming, a Canadian gaming and online gambling company listed on the Toronto Stock Exchange, David Baazov, has been charged with insider trading by the Quebec securities regulator.
Baazov has already released a public statement contesting the charges: "These allegations are false and I intend to vigorously contest these accusations," Baazov said earlier today.
The Autorité des marchés financiers (AMF) has reportedly executed search warrants and issued cease trade orders for 13 individuals allegedly connected to Amaya.
The regulator began its investigation into Baazov in 2014 for trading activity with Amaya's stock prior to the PokerStars acquisition.
Baazov faces a maximum of five years imprisonment and up to $5 million in fines, if convicted.
According to a report released by Reuters, Amaya's shares took a 27.7% hit down to $10.30 to start the morning.
These allegations are false and I intend to vigorously contest these accusations
Amaya Inc. is best known for being the current owner of the world's largest online poker room, PokerStars. The company acquired PokerStars along with its parent company Rational Group for $4.9 billion in a deal completed August 1, 2014.
In addition to Baazov, the following companies and persons have been charged, according to a report by CBC.ca:
- Diocles Capital Inc.
- Sababa Consulting Inc.
- 2374879 Ontario Inc.
- Benjamin Ahdoot.
- Yoel Altman.
Sportsbook Review will continue to monitor the case as it unfolds.
SBR reported in December that Amaya launched betting website BetStars in select European markets, with additional countries slated to be included throughout 2016.