AMF begins hearings for Amaya’s insider trading case

Allegations of insider trading extend to 13 people affiliated with Amaya’s ex-CEO.

Two days of hearings are set to begin today, concerning a case filed in March against David Baazov, Amaya’s CEO accused of insider trading.

Canada.- L’Autorité des marches financiers (AMF) set two days of hearings beginning today, concerning a case of insider trading filed in March against Amaya’s ex-CEO David Baazov, his brother Josh and a dozen colleagues, friends and family. Allegations of insider trading against 13 people in lieu with the ex-CEO of online gaming company Amaya Inc. will be discussed this morning at a hearing conducted by an independent tribunal overseeing Quebec’s financial sector.

In an amended filing detailing the case, securities regulator L’Autorité des marches financiers argues that David Baazov benefited from a kickback scheme in which he received payments in exchange for sharing privileged information.

Baazov’s acquaintances and family allegedly used access to privileged information about impending Amaya acquisitions to reap nearly US$1.5 million in profit over five years. So far, the 13 Baazov associates haven’t been charged but they have been ordered not to trade shares or gain access to proceeds from their activities.

Ian Robertson, a spokesman for David Baazov declared that Baazov is “innocent of any wrongdoing” and is contesting the allegations. However, Baazov faces criminal charges before the Quebec Court, including influencing or attempting to influence the market price of the securities of Amaya and communicating privileged information. Baazov resigned as CEO and cut all ties with the company, though is still a major shareholder.

David Baazov was charged as part of an investigation by the AMF that resulted in 23 charges against three people — Baazov, Yoel Altman and Benjamin Ahdoot and three companies: Diocles Capital Inc., Sababa Consulting Inc. and 2374879 Ontario Inc.