Wednesday, March 23, 2016 : AMAYA’S BAAZOV CHARGED WITH INSIDER TRADING (Update)
Individual charges, Amaya, subsidiaries, directors and shareholders not implicated.
The ongoing investigation by the Autorité des marchés financiers (AMF), the securities regulatory authority in the Province of Quebec, has taken an unpleasant turn with charges of insider trading laid against Amaya Inc. chairman and chief executive officer David Baazov.
The charges detail Baazov being involved in aiding with trades while in possession of privileged information, influencing or attempting to influence the market price of Amaya securities, and communicating privileged information.
A company statement said while the charges do not implicate Amaya, its subsidiaries or any other directors or shareholders, it believes they are without merit and it expects Baazov to be fully exonerated.
“The charges relating to communicating privileged information involve allegations relating to a former financial advisor to Amaya, and the charges relating to influencing or attempting to influence the market price of Amaya securities involve allegations relating to that same advisor and an employee,” the statement reads.
"David Baazov has the full support of the independent members of the board," said Dave Gadhia, Amaya's Lead Director and independent board member, and the former Executive Vice Chairman and CEO of Gateway Casinos & Entertainment Inc.
"As noted previously, Amaya conducted an external internal review, supervised by its independent board members with the assistance of external legal counsel from Osler, Hoskin & Harcourt LLP in Canada and Greenberg Traurig LLP in the U.S., which thoroughly reviewed the relevant internal activities surrounding the Oldford Group acquisition.
“This review found no evidence of any violations of Canadian securities laws or regulations. The independent members of the board received and reviewed the information and concluded that no action should be taken,” Gadhia concluded.
The company notes it continues to co-operate fully with the AMF and its ongoing investigation.