Amaya Inc CEO David Baazov has officially pleaded ‘not guilty’ to multiple charges of insider trading put forward by Quebec’s Securities Regulatory Authority (AMF)
Baazov who has placed himself on voluntary leave as CEO of Amaya Inc denies five offences of aiding Toronto TSX trades whilst in possession of privileged information that could influence or manipulate market pricing.
On 23 March the Quebec AMF had charged Baazov and close business associates Benjamin Ahdoot and Yoel Altman of breaching Canadian corporate laws in relation to privileged information relating to Amaya’s 2014 acquisition of Rational Group assets PokerStars and Full Tilt.
Canadian financial services firms’ Diocles Capital, Ontario Inc and Sababa Consulting have been also implicated in the investigation.
The charged respondents are alleged in particular to have used, between December 2013 and June 2014, privileged information pertaining to the securities of Amaya inc. for trading purposes.
Responding to the charges David Baazov representatives stated that Amaya’s CEO would be ‘fully exonerated’ of the charges, as they are without merit’.
AMF representatives stated that they were confident of the evidence against Baazov and his associates. If found guilty, the respondents will face and multi million CAD $ penalties and potential time in prison.
Since the announcement of the charges, the Amaya board of directors has appointed Divyesh Gadhia as Interim Chairman, with Rafi Ashkenazi taking on Interim CEO responsibilities.