PokerStars-Amaya 2014 Acquisition May Have Involved Insider Trading

Written by:
Guest
Published on:
Apr/13/2017

MONTREAL - The Ontario Securities Commission has levelled insider tipping and trading allegations surrounding Amaya's 2014 purchase of PokerStars.

The regulator alleges that Benedict Cheng and John David Rothstein of investment firm Aston Hills conveyed undisclosed information in June 2014 about the impending US$4.9-billion deal to help customers recoup some losses from prior investments.

In a filing on Wednesday, the OSC says Cheng, who was president and co-chief investment officer at Aston Hills Financial, "instructed, encouraged and/or suggested" that Rothstein inform those who lost money on other investments promoted by Aston about the acquisition before it was announced.

"Rothstein understood that the purpose of providing them with the material, undisclosed information was to make up for these losses," said the 13-page filing.

Rothstein, who was senior vice-president and national sales manager at Aston Hills Asset Management, then passed along the information to Frank Soave, an investment adviser at CIBC Wood Gundy, the document alleges.

Soave made a net profit of $38,166 or a 63 per cent return after selling the Amaya (TSX:AYA) shares he purchased a day before on the recommendation of Rothstein, who earned a net gain of $5,507 on the trading of Amaya shares, said the filing.

The OSC alleges that Cheng, Soave and Aston Hills Financial CEO and chairman Eric Tremblay made misleading or untrue statements to investigators.

Lawyers for Cheng, Soave and Rothstein declined to comment. Tremblay's lawyer could not immediately be reached for comment.

Hearings are scheduled for next Tuesday and May 4 in Toronto.

Poker News

Eric Baldwin Wins $1500 No Limit Hold’em, Robert Peacock Wins Double Stack

Eric Baldwin Wins $1500 No Limit Hold’em, Robert Peacock Wins Double Stack

33-year-old Robert Peacock won the $1000 No Limit Hold’em Double Stack, his first bracelet and first bracelet and $644,224.

Virtue Poker News

Virtue Poker News

Gambling911.com has your latest news related to Virtue Poker.  This site has many of the biggest names in poker as site ambassadors.  Using the Ethereum blockchain and smart contracts to build a decentralized poker platform, Virtue Poker has trust and transparency built in, the site claims.

Crypto Hedge Fund Pays Investors' $10,000 WSOP Buy-In Fees

Crypto hedge fund Pantera Capital says it will reward seven existing investors with free tickets it received to the 49th Annual World Series of Poker in Las Vegas. 

Michael Mizrachi Wins 50K Poker Players Championship 2018

On Tuesday evening, Michael Mizrachi made World Series of Poker history in addition to winning $1,239,126.

Michael Mizrachi Leads $50K Poker Players Championship, Matthew Davis Wins WSOP Senior Event

It took roughly three levels for the field in Event #33: $50,000 Poker Players Champion to be cut from 12 to the official final table of six players. Currently leading the pack is Michael "The Grinder" Mizrachi who bagged up a total of 8,865,000 chips at the end of play on Monday, 18 June.

Syndicate