Amaya CEO David Baazov Charged With Insider Trading
The acquisition of PokerStars’ parent company Rational Group by Amaya Gaming in 2014 was surrounded by rumors and speculation way before it was confirmed. We reported on these well placed rumors and anyone looking to make a small fortune should have bought stock prior to the formal confirmation of the acquisition.
The time gap between the rumors and the acquisition was pretty big and left plenty of time according to conspiracy theorists for some major moves on the stock. The accusations of insider trading surfaced early on as shareholders made a small fortune as the Amaya’s stock price rocketed on the news of becoming PokerStars owners.
No less than Amaya’s CEO David Baazov is facing charges of insider trading by the Quebec’s securities regulator. According to the regulator charges were laid against Baazov for “aiding with trades while in possession of privileged information, influencing or attempting to influence the market price of the securities of Amaya” and “communicating privileged information.” Needless to say the announcement had a massive effect on Amaya’s share price which dropped over 27% in early trading to reach $10.30.
Baazov has recently put in a bid to buy out Amaya and the latest charges will not help that to say the least. In a statement Baazov remained adamant at his innocence.” These allegations are false and I intend to vigorously contest these accusations.” He added he was highly confident his innocence would be proved.
Amaya themselves were seemingly conducting business as usual and said that they would cooperate with regulators and did not expect the charges to impact on their operations. They went on to say that their internal investigation onto the conduct of Baazov found nothing that would violate Canadian securities laws. Baazov is facing 23 charges along with two other Amaya staffers Benjamin Ahdoot and Yoel Altman.