Amaya Online Gambling CEO Baazov Moves Out

Published Friday, August 12, 2016 - Online-Casinos.com
Amaya Online Gambling CEO Baazov Moves Out

The Quebec regulator of stock trading has made an impact in the online gambling industry with the charging of Amaya Gaming’s Chief Executive Officer David Baazov with insider trading. The executive stepped down as the CEO August 11 following the escalation of the accusations and the controversy surrounding the situation.

The Quebec regulator filed 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" and "communicating privileged information." Baazov said in a statement "These allegations are false and I intend to vigorously contest these accusations," adding that he was "highly confident" he would be found innocent.

The firm also commented that the charges against Baazov involve allegations linked to an employee and a former financial adviser to the company. Baazov, who was the chairperson for the Amaya board of directors until he went on leave, will not stand for re-election Amaya said.

Divyesh Gadhia, was named interim chairman in March, and the position has been made permanent according to the Amaya spokesperson. . Sylvain Theberge, speaking for the regulator, said Benjamin Ahdoot and Yoel Altman were also charged with insider trading because these people were "in the circle on Amaya." Interim CEO Rafi Ashkenazi will replace Baazov as the Chief Executive Office of the company.

The Quebec regulator could find it hard to maintain the case against Mr. Baazov and the others involved.  Insider-trading allegations are notoriously tough to prove and even the fiercest enforcers of market probity have experienced carefully constructed cases collapse in court. Mr. Baazov, the Autorité des marchés financiers alleges, often texted his brother to relay insider information that Josh Baazov then passed on to a circle of associates, who acted on the information before it was made public. The AMF is trying to land a ‘big fish’ but it must act fast to secure a conviction in this case.

 

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