Amaya Denies Engaging in Insider Trading with Recently Release AMF Warrants
Amaya Inc. has stated that the disclosure of papers about possible insider trading by its staff is "nothing out of the ordinary" and that it remains positive no one in the firm broke Canadian securities laws.
On Wednesday, a Quebec court lifted a prohibition on the publication of several search warrants and affidavits, which disclosed that three Amaya workers, whose names have been blacked out in the files, are under scrutiny by the financial regulator.
The trio's computers and electronic storage devices were seized by the Autorité des Marchés Financiers (AMF) during a raid on Amaya's Montreal headquarters last December as part of an investigation into dubious share transactions in the month prior to the company's $4.9 billion acquisition of the Oldford Group, parent of Rational Group and PokerStars.
"No Indication of Breaches"
"We have carefully examined the pertinent internal processes associated with our acquisition of Oldford Group and have discovered no evidence of Canadian securities law violations, including tipping or insider trading by CEO David Baazov and CFO Daniel Sebag," said Ben Soave, an advisor to Amaya's Compliance Committee and Board of Directors since 2012.
"Moreover, the company has not been given any proof that any executives, directors, or employees committed any breaches of securities laws or regulations."
Amaya's shares had a sharp increase over the course of the month before the acquisition went through, leading to speculation about a buyout. Rumours of a takeover had been circulating for weeks before the announcement was made.
On May 23, three weeks before the acquisition, Stockhouse.com published the speculation, with the reporter stating "someone I know high up at a major brokerage firm told me about this the other day."
Two days before that, Amaya's share price had surged by 14% in a single day.
Whistle-blowers
Reportedly, 20 people initially came under scrutiny, some of whom were Amaya employees, while others worked for Manulife Securities Inc and Canaccord Genuity Corp, the latter two entities facilitated the acquisition between Amaya and the Oldford Group.
It is conjectured that the AMF commenced its inquiry following contact by two whistle-blowers at Manulife.
"The AMF inquiry hasn't led to any actions, and no charges have been pressed," said the firm in an official statement. "The company is certain that when the investigation is over, the AMF will reach the same conclusion as Amaya has: that if violations of Canadian securities laws occurred, they weren't perpetrated by the Company, personnel, or officials."
Amaya has said that it was prepared for an inquiry and has been working closely with investigators.
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