David Baazov Takes Unpaid Leave And Prepares To Buy Amaya
Published on by Becky Mosley
David Baazov has announced a voluntary paid leave of absence from his role as chairman and CEO of Amaya, during which he will prepare to buy the company and battle charges of insider trading.In the meantime Dave Ghadia, who has been one of Amaya’s directors since 2010, will replace Baazov as interim chairman. The role of CEO will be filled by Rafi Ashkenazi, CEO of the Rational Group, a company owned by Amaya that operates brands such as PokerStars and Full Tilt.Regarding his choice to taking a leave of absence, Baazov said: “As always, I continue to be dedicated to doing the right thing for Amaya and all its stakeholders. I believe that stepping down in the short term will help to avoid distraction for the company and its management while I vigorously contest all allegations made against me and pursue my bid to acquire the company.”
Insider Trading Charges
The Quebec based financial security regulator Autorité des marchés financiers (AMF) revealed these allegations last week. Baazov and many others were charged with using information for trade between December 2013 and June 2014, when Amaya bought Oldford Group, creating $4.9 billion in profits.Regarding Baazov’s charges in particular, they include ““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”.
13 People Facing Charges
Baazov’s brother Josh is also one of thirteen other people who have received freeze and cease trade orders, having made almost $1.5 mllion in profit between 2011 and 2016. This group of individuals also includes Craig Levett who is thought to have been involved in Amaya’s creation. According to the Globe and Mail, his current company was bought by Amaya “so that the corporation would have an operating history”.Baazov still owns around 18.6% of Amaya’s shares, so it is unlikely he will leave Amaya for good. Plus, in February we were told Baazov hopes to create an all-cash proposal of CAD$21 per common share.