With the untimely passing of the crack-smoking former mayor of Toronto, Rob Ford, Canada was in desperate need of a new scandal. Well, today they got it. Amaya (NYSE: AYA) CEO, David Baazov, is being charged with insider trading.
Quebec’s Autorité des marchés financiers (the AMF) filed charges against Baazov and others with “aiding with trades while in possession of privileged information, influencing or attempting to influence the market price of the securities of Amaya inc., and communicating privileged information.”
For those not familiar with Amaya, the company owns gaming and related consumer businesses and brands including PokerStars, Full Tilt, BetStars, StarsDraft, the European Poker Tour, PokerStars Caribbean Adventure, Latin American Poker Tour and the Asia Pacific Poker Tour.
Shares of Amaya cratered 20% lower on the news.
Mr. Baazov denies the allegations against him, and Amaya believes they are without merit and expects Mr. Baazov will be fully exonerated.