Amaya CEO Got Kickbacks for Inside Information

Amaya 2David Baazov, former CEO of Montreal online gaming firm Amaya, benefited from a kickback scheme in which he received payments in exchange for sharing privileged information about company acquisitions with friends and their families, Quebec’s securities regulator alleges.

The allegations against Baazov, charged earlier this year following an investigation into accusations of insider trading, are contained in an amended 105-page document that L’Autorite des marches financiers (AMF) filed with the independent tribunal overseeing Quebec’s financial sector.

“Several sophisticated agreements were negotiated even before the infractions were committed to pay kickbacks to the tipsters,” alleges the document.

The document was filed as part of a case against 13 other people, including Baazov’s brother Josh, who were alleged to have used their access to information to reap nearly $1.5 million in profit over five years. Those 13 people haven’t been charged but have been ordered not to trade shares or gain access to proceeds from their activities. The tribunal is holding a hearing next week to discuss the AMF document.

The AMF says it bases the allegations in the document upon reviewing emails and text messages along with trading activity among a number of people.

It alleges that between Dec. 28, 2010, and January 2016, Baazov, his brother Josh and three others passed on privileged information about Amaya and acquisition targets, such as Cryptologic Ltd., Chartwell Technology Inc., WMS Industries Inc., BWIN.Party and the Intertain Group Ltd.

More at CTV News

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