David Bazaev, the previous head of Amaya, is facing legal proceedings in Montreal, Canada, for insider dealings.
The case concerns Amaya, now recognized as The Stars Group, and its takeover of Rational Group, the parent organization of PokerStars and Full Tilt.
The Autorité des marchés financiers (AMF), Quebec’s securities watchdog, claims that Bazaev and five co-defendants dealt in Amaya shares using confidential knowledge during the acquisition discussions.
As per the AMF, the transactions occurred between December 2013, when Bazaev initially met with the proprietors of Rational Group, and June 2014, when the agreement was publicized.
During this period, Amaya’s stock value increased by 50%, enabling the defendants to benefit from the trading activity, as reported by the Montreal Gazette.
Bazaev confronts five accusations, including “aiding in a trade while possessing privileged information,” influencing or attempting to influence the market value of Amaya securities, and distributing confidential information.
Its a curious coincidence that Baazov was initially accused in the early part of 2016. Shortly after this accusation, he relinquished his role as CEO of Amaya and formally resigned from the position in August of the same year.
However, despite the trial commencing this week, the Montreal Gazette reports that the proceedings are likely to be temporarily halted due to motions filed by Baazov and his co-defendants.
Legal representatives for the defense have expressed criticism of the AMF’s approach to the case, labeling it “hasty and initiated before the investigation was finalized,” and asserting that evidence disclosure has been “disorganized and sluggish.”
The legal proceedings remain in progress.
Connected: Amaya Confirms Baazov’s Exit
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