Amaya Gaming has today (Wednesday) suffered a heavy drop in its share price after it was revealed that chief executive David Baazov will face five charges of insider trading in regards to the company’s acquisition of PokerStars.
A total of 23 charges have been filed by Quebec’s security regulator, the Autorité des marchés financiers (AMF), accusing Baazov of “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”.
Shortly after Amaya acquired PokerStars in 2014, a deal representing the largest of its kind in Canada, an investigation was launched into insider trading.
In a statement, Baazov strongly denied the charges, which could lead to fines or a prison term should he be found guilty.
“These allegations are false and I intend to vigorously contest these accusations,” Baazov said.
“While I am deeply disappointed with the AMF’s decision, I am highly confident I will be found innocent of all charges.”
Benjamin Ahdoot, a childhood friend of Baazov, and Yoel Altman, a lender and adviser to Amaya, are also facing charges “for trading while in possession of privileged information and influencing or attempting to influence the market price of the securities of Amaya”.
In addition, Diocles Capital inc, Sababa Consulting inc. and 2374879 Ontario inc. are charged with similar offences.
The news has had a significant impact on Amaya’s share price, which was down 17% during early trading on the Toronto Stock Exchange today.
source : www.igamingbusiness.com
