Ontario Securities Commission (OSC) has been investigating the dealings that happened around the Amaya Game deal. This deal took place in 2014 when Amaya Gaming purchased the parent company of PokerStars.
In the past week, OSC has put together papers that detailed suspicious dealings for the insider trading allegations. Top execs at Aston Hill Financial are the individuals that OSC is investigating. The former president of the company, Benedict Cheng, John David Rothstein, Eric Tremblay are implicated in this investigation.
OSC Amaya Gaming Investigation Details
In the filed paperwork, Cheng knew about the deal two months before it happened. He then notified Rothstein to inform some of their clients about the deal. However, the clients that were advised about the deal were the ones who had lost money due to poor decisions that the company had made.
Clients who Benefited
One of the people who benefitted from the tip off was Frank Soave of CIBC Wood Gundy Investment. On the day that he was made aware of the deal, he went ahead and bought shares of 5k. At the time, they were estimated at C$12.10 each. Once the deal was complete, he then sold the shares at C$19.78 making 63% profit. Rothstein, himself bought 700 of Amaya’s shares and sold them as well to make a profit of C$5,507.
OSC Amaya Gaming Investigation Implications
Eric Tremblay is implicated because he provided the OSC with misleading information. All three top executives are facing charges of lying to officials about these deals. What sparked the investigation was the 300 investors that were seen to have had shady dealings with regards to the Amaya deal.
The Ontario Securities Commission are to continue the investigation until a resolution has been made in this case. On 18 April 2017, OSC will have a hearing at the Toronto headquarters about the case.