Baazov Facing Crimnal Charges


BaazovEmbattled CEO of Montreal based Amaya Inc, David Baazov has denied all claims related to several charges of having confidential information during a stock trade and using it to his benefit. He has since been charged by the Quebec’s Securities Regulatory Authority (AMF) but has refused any wrong doings. He has since then denied the charges and been on paid leave to allow and assist in investigations into the alleged offenses and to be devoid of any interferences.

The company has since named Divyesh Gadhia as interim chairman and Rafi Ashkennazi assumes as the Interim CEO.

The Israeli born entrepreneur took the online gambling industry by surprise and is referred to as the king of online gambling. David led Amaya to acquire companies which was into developing gaming applications and tools. He was able to acquire Cardullac Jack Company at a cost of $117 million as he increased his shares in the company in 2012. It was his major successful acquisition at the time. The purchase alone made his Amaya Inc increase profits to the tune of $36 million. This successful deal inspired his purchase of Pokerstars which has brought all this brouhaha with the AMF.

Mr Baazov has denied all the five civil offenses he has been charged of which is in relation leaking privileged information to the Toronto TSX trades that made them to have foreknowledge of market pricing and adjusted them subsequently to their benefit. This according to the AMF is a high beach of company’s code of ethics. The investigation of Baazov was necessitated due trading activities in stock which brought about the acquisition of Pokerstars by Amaya INC in a 4.9 billion deal.

The Quebec Security Regulatory Authority (AMF) has charged Baazov and his business partner Benjamin Ahdoot and Yeol Altman for their involvement in breach of the Canadian corporate laws in relation to handling of insider information during the purchase of Full Tilt and PokerStars in 2014 by the Amaya Inc. The Authority is also investigating other 18 persons in relation to the leaked of privileged information in some other firms.

Several other financial institutions including Diocles Capital, Ontorio Inc, and Sababa Consulting also has questions to answer for aiding the process and have been involved in the ongoing investigations.

On December 2013 to June 2014, the defendants are said to have used the information related to the security of Amaya Inc. to their benefit in trading which goes contrary to the Canadian corporate laws that is used for monitoring privileged information.

However, the attorneys of David Baazov has denied any wrong doing saying the claims are fraud and unsubstantiated. The Board of Amaya has also led a support to their CEO and believes he will be exonerated from all the charges. He was optimistic that Amaya Inc. at the end of the trail will be cleared of all the charges.

Mr Baazov and his other corporates when find guilty will have to sever some jail terms as well as paying penalties which can be millions of dollars.