Amaya Gaming CEO Baazov charged with Insider Trading

Less than two years ago, David Baazov convinced some of the world’s biggest banks to help him buy PokerStars/Full Tilt for $4.9 billion. Now, the Amaya Gaming CEO is facing insider trading charges.

Quebec’s securities regulator, the Autorité des marchés financiers (AMF), has leveled 23 charges at Amaya’s top brass, including five charges 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 Inc., and communicating privileged information.”

The Globe and Mail reports that Benjamin Ahdoot, Baazov’s childhood friend, and Yoel Altman, a big lender to Amaya, have also been charged for “trading while in possession of privileged information and influencing or attempting to influence the market price of the securities of Amaya.”

The AMF has also executed search warrants against 13 other individuals, including David’s brother, Josh Baazov. All 13 are suspected of using insider information to make a collective $1.5 million on trades involving Amaya from 2011-16.

For David Baazov’s part, he seems pretty confident that he’ll be able to beat the charges against him.

“These allegations are false and I intend to vigorously contest these accusations” said Baazov. “While I am deeply disappointed with the AMF’s decision, I am highly confident I will be found innocent of all charges.”

It’s important to note that Amaya as a company has not been charged with anything. These are only individual charges that will see Baazov and the other accused parties face potential “stiff fines as well as prison .” The company does, however, intend to Baazov as he goes through legal proceedings.

“David Baazov has the full of the independent of the board,” said Dave Gadhia, a key Amaya board member.

The investigation surrounding Baazov and his colleagues is nothing new. It began in 2014 not long after Amaya purchased PokerStars in the biggest acquisition in Canadian history. However, the investigation seemed to have quieted in recent months, until the charges were leveled.

According to AMF President and CEO Louis Morisset, this investigation represents the organization’s strong commitment to stopping insider trading.

“We have made suppressing illegal insider trading and market manipulation a top priority, as this type of conduct profoundly affects public confidence and the integrity of our markets,” said Morisset.