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Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16)

03-27-2016 , 02:34 AM
ALL of the CHARGES will get DROPPED vs BAAZOV
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 03:03 AM
Quote:
Originally Posted by chinamaniac
ALL of the CHARGES will get DROPPED vs BAAZOV
Totally possible if he offers the investigators the names of people that convinced the hedge funds to give him the loans, while making money illegally, for doing so.
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 03:09 AM
Quote:
Originally Posted by Sect7G
Totally possible if he offers the investigators the names of people that convinced the hedge funds to give him the loans, while making money illegally, for doing so.
I Didn't clarify in my post but he will skate free and not have to talk. His lawyers will take care of everything.
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 03:14 AM
Quote:
Originally Posted by chinamaniac
I Didn't clarify in my post but he will skate free and not have to talk. His lawyers will take care of everything.
You should have stopped at your 1st prediction.
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 03:19 AM
Eye-opening new info in this link. The Baazov insider trading stuff goes back far longer than just the Amaya/Stars transaction. Basically every deal they were involved in going back to 2010 (if not further) allegedly involved David telling his brother Josh, who then relayed the info to their mutual friend Levett who then cut Josh checks. The Baazov family is dirty as the day is long.
"The illicit trading reportedly dates back to Amaya’s late-2010 discussions about acquiring online gambling technology firm Cryptologic. The AMF files reportedly show telephone calls between David and Josh, followed by calls from Josh to Levett, who went on to make multiple equity purchases in Cryptologic.

The AMF files reportedly show evidence of similar shenanigans involving a total of seven companies – Amaya, Cryptologic, Chartwell Technology, WMS Industries, Bwin, Intertain Group and the Oldford Group – over a five-year period.

In the case of WMS Industries, which was acquired by Scientific Games Corp for $1.42b in 2013, Josh reportedly intercepted communications between David and an attorney discussing the imminent acquisition, which Josh subsequently relayed to Levett.

Hundreds of thousands of dollars worth of WMS shares were purchased by Levett, his wife Nathalie Bensmihan, his brother Earl and three other associates, netting the six individuals over $170k in profits. Levett subsequently cut Josh two checks totaling $32,100 that were marked ‘gift’ in the memo section.

The Levett family’s Amaya-related transactions reportedly earned them over $500k in illegal profits since 2010. The AMF says a further $800k in profit was generated via illegal trades related to Amaya’s 2014 $4.9b purchase of the Oldford Group, the parent company of PokerStars and Full Tilt.

Also sharing in the inside wealth was Feras Antoon, the Montreal-based online porn baron behind Brazzers and other wanking sites, who the AMF believes pocketed $83k from illegal trades based on Amaya insider info.

The insider dealings were reportedly ongoing at the time the warrants were issued, as the AMF believes Josh, Levett and their accomplices were poised to benefit from insider knowledge of David’s recently announced plan to take Amaya private (a plan David insists is still in play, regardless of the charges)."
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 05:01 AM
unreal.

this section of article most relevant in relation to future of Stars.

Quote:
DAVID BAAZOV’S MURKY FUTURE
The Baazov family’s legal woes have prompted no shortage of speculation regarding how far the legal ripples will spread. It appears almost certain that David’s bid to take Amaya private is all but doomed – assuming the bid was ever intended to do anything more than boost Amaya’s sagging share price – as David’s mystery investment partners aren’t likely to welcome this new uncertainty.

There’s also mounting speculation that David may be urged to step down from his executive role for the good of the company. Shareholders might have pressed for this step regardless of the recent developments, because, while David’s dealmaking talents are undeniable, his ability to run a successful online gambling company is far less definitive.

Amaya’s most recent earnings report showed a decline in its core poker product, driven in part by cannibalization from the site’s diversification into other gaming verticals. PokerStars’ ongoing cost-cutting measures at players’ expense have also been criticized as something that would have been unimaginable under Stars’ former management.

There’s also the question of gaming operator ‘suitability’ as a condition for licensing in most jurisdictions. If David is convicted, PokerStars could have a tough time hanging on to licenses in some jurisdictions, while the pursuit of new licenses in other jurisdictions will prove even more challenging. Even if David beats the AMF’s rap, the lingering whiff of illegality will provide PR ammunition for Stars’ anti-gambling and anti-competitive opponents.

The first jurisdictional casualty could be close to home. The province of Quebec’s plan to offer licenses to certain international online operators was widely perceived as a sop to local boys Amaya, but that favoritism looks a lot less publicly palatable when your argument becomes: “sure, he’s a rogue, but he’s our rogue.
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 07:04 AM
Amazing how time and again people think they are so smart/ powerful/ big they can do whatever they want without any fear of being caught.
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 10:12 AM
Quote:
Originally Posted by gilmore38
Amazing how time and again people think they are so smart/ powerful/ big they can do whatever they want without any fear of being caught.
Because sadly most of the time they are right.
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 10:15 AM
Quote:
Originally Posted by OnTheSide
I won't go to the rig thread because it is relevant to this thread. You just can't sweep all the filth into the rig thread, it's not ok. People deserve to know what is going on and these things need to be considered and debated in public, especially to keep a psychopathic CEO running the company in check.
A pool of players doesn't just change It's level so dramatically and It is silly to say that only the recreational players stopped playing because it took with it regulars and winners as well (maybe a little less because a small portion of them managed to find a way to stay) but your argument holds no water.
I'm quite sure virtually every pro would agree the change in player pool makeup has been dramatic. Perhaps we're all wrong though and you're right?

Here's an old post of mine with a pretty diagram to help you visualise it better:

http://forumserver.twoplustwo.com/sh...64&postcount=1


So basically, in the past few years we have gone from an environment with a pool of players that looked like this pre-Black Friday, and pre-dating many of the educational websites, coaches, software tools:



To the current environment which has a much higher reg:casual player ratio:



(Those outside of the circle represent ex-players who are no longer part of the player pool)

NB: The information shown in these diagrams is for demonstration purposes on how the player makeup has shifted- they are not intended to be precise ratios.



Anyway, this pointless conversation is taking the thread off course. Post in the Riggies thread.
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 10:24 AM
Interestingly enough, I was trying to search for something related to the calvinayre article and found this unsealed indictment of Ofer Baazov - who is aka Josh Baazov in the ayre article. In this complaint it seems they are listing them as two separate people unless I am misunderstanding the sentence.

https://www.ftc.gov/news-events/pres...-against-phony

Quote:
(7) Incentive International 9013-0980 Quebec Inc., doing business as Incentive International, Incentives International, and Pegasus Industries (File No. 962 3231) is a company located in Montreal, Quebec, Canada. The FTC charged that this firm engages in cross-border telemarketing fraud. Incentive calls senior citizens in the United States and tells them they have won valuable prizes. In fact, according to the FTC, consumers receive travel certificates, radios, or air purifiers worth a fraction of the hundreds or thousands of dollars that consumers pay to Incentive. The company allegedly also fails to disclose, clearly and conspicuously, that no purchase is necessary to win a prize, the method to enter the prize promotion without purchase or payment, and the odds of winning each potential prize. Defendant Ofer Baazov owns Incentive, and defendant Joshua Baazov is an officer of Pegasus Industries. Both individuals are named as defendants in the FTC’s complaint.
One of many companies charged under "Project Jackpot" which apparently was an FTC consumer protection effort to stop telemarketers from lying to consumers in 1996. The Baazov-led company listed also happens to be operating in Quebec.

David Baazov is not listed in this indictment, however.
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 10:29 AM
Yeah the first article linked mentioned or at least implied that he was pretending to be two different people and they realised later.

* this one
https://advisor1.dynamic.ca/servlet/...cenic_24950113
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 10:46 AM
If you want a good breakdown of how these things happen, here's a good breakdown of the tangentially related Shkreli affair:
http://www.bloombergview.com/article...-good-at-fraud
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 04:49 PM
Quote:
NB: The information shown in these diagrams is for demonstration purposes on how the player makeup has shifted- they are not intended to be precise ratios
It's a funny thing.. that page you just ripped out of a 4 year old's coloring book reminded me of the rake graphs pokerstars released proving without any doubt that they are our best choice out there.
Are you claiming this is how the pool looked right after black Friday, or are you saying this is what it looks like today?
Anyway, you can march right back to the rig thread where you came from and defend pokerstars as much as you like.
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 05:37 PM
right after Black Friday tonnes of rec players and a few regs left. then, many of the regs rejoined but no recs rejoined. since then more regs have joined and recs remained about constant (depending who you ask it may lower or go up but it certainly has gone done vs regs ratio)

I honestly don't intend to be mean with this but pretty much 100% of ppl who suggest or think stars is rigged have never been winning players in their lives. I am not saying there is no chance something is going on but it's highly unlikely and this is simply true, timex recently said that in the podcast.
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 05:52 PM
Quote:
Originally Posted by irockhoess

https://www.ftc.gov/news-events/pres...-against-phony

David Baazov is not listed in this indictment, however.
So is Ofer/Josh Baazov the same brother whose driver's license David used to rent an apartment after his parents threw him out of the house when he was a teenager (as reported by Forbes last year)? If so, these two seem to be pretty "tight"...

It's going to be interesting to see how they convince regulators going forward that they want "regulated" gambling everywhere because you want to protect consumers from shady foreign operators.
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 06:26 PM
Good thing Isai sold the company to a "clean" entity so that online poker could come back (state-by-state) in the US!!

Also, per the end of the Calvin Ayre article (re: Baazov's future with the company), looking at the two years Amaya owned/ran Ongame would be also relevant. Traffic dropped significantly - from the outside, the site appeared to pretty much go in the tank. The eventual sale was very convoluted in a way that made it hard to value, and Amaya eventually recognized a $32 million loss (more complicated than true value, but still). This was in late-2014 when everyone was trumpeting Baazov as the brilliant new king, when the actual running of a poker/gambling site had gone quite the opposite.

http://forumserver.twoplustwo.com/29...ports-1576339/

Baazov/Amaya's track record demonstrates a phenomenal ability to get outside financing when needed (original Amaya IPO when they were in financial straits, Stars LBO, etc.), not in actually operating an online gambling site over the long-haul for profit (like Isai did masterfully).

If I'm an Amaya shareholder (with a last name other than Baazov ), I would certainly want someone else running the company in the future. Unless there's another $10 billion in funding lurking out there that's going to magically make all these problems go away.
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 06:31 PM
Quote:
Originally Posted by Gramps
Good thing Isai sold the company to a "clean" entity so that online poker could come back
i like isai but let's be real. if you think your company is worth $2B and some donk wants to buy it for $5B, it could be kim jong un for all i care, that bad boy is getting sold
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 06:52 PM
Quote:
Originally Posted by OMGClayDol

I honestly don't intend to be mean with this but pretty much 100% of ppl who suggest or think stars is rigged have never been winning players in their lives. I am not saying there is no chance something is going on but it's highly unlikely and this is simply true, timex recently said that in the podcast.
The sentiments of these players that believe stars is rigged is a direct reflection of excessively raked games.


Quote:
Originally Posted by Clayton
i like isai but let's be real. if you think your company is worth $2B and some donk wants to buy it for $5B, it could be kim jong un for all i care, that bad boy is getting sold
Not completely accurate, Ayre knew this was coming, as did SOME players, but collectively we could not admit it to ourselves and still can't seem to as a group:

Quote:
http://www.theglobeandmail.com/repor...8193/?page=all

“Answering questions by e-mail from his new home base of Antigua, Ayre says that the Scheinbergs cleverly unloaded a hot potato on Amaya. “I think the Scheinbergs clearly got the best of that deal. They know that taking PokerStars public will cause major changes in its business model.” Amaya used to just supply software to gambling sites; now it is an operator. Although PokerStars no longer offers real-money online poker in the U.S., it still serves many grey markets like Canada where online gambling’s legal status is uncertain. “I expect them to be forced out of the Canadian market and many other markets in the world now,” says Ayre. “The pressure will come from regulators in the United States, the U.K. and Canada to get out of all grey markets.””
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 07:13 PM
Quote:
Originally Posted by Clayton
i like isai but let's be real. if you think your company is worth $2B and some donk wants to buy it for $5B, it could be kim jong un for all i care, that bad boy is getting sold
I agree, just making the (sad face) point that this is another nail in the coffin for further expansion of online poker back into the US.

"Online gambling/poker should be & stay illegal. It's run by shady people & crooks."

"No, no. That belief used to be grounded in some fact, but it's successfully regulated in many other countries and the biggest companies of today are operated by experienced legitimate executives, just as any Fortune 500 company would be."

[News of Baazov indictment breaks]

"[Crickets]"

Baazov looking more and more like Tzvetkoff and less like what the "new school" needs to be to get poker back into the US (which was already a big hill to climb).
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 07:42 PM
Also from that Daily Globe article linked above:

Quote:
On the other hand, if anyone’s going to break open the giant piggy bank in a business dogged by shady connotations, a squeaky-clean Canadian public company seems to suit the part. The PokerStars deal helpfully put at arm’s length some of the business’s legal dodginess (about which more shortly).


And a blurb about/from Nelson Rose towards the end (US gambling law expert):

Quote:
I. Nelson Rose, a professor at Whittier Law School in California who is an expert on gambling and gaming law, says that Amaya’s legal chances of success “are 100 per cent political chances.” The key will be to dangle the carrot of increased revenue in front of the state politicians and regulators, and to make peace with land-based casinos by convincing them that letting PokerStars back in will expand the market for everyone.
This insider trading, et. al. mess strengthens the fight of any entrenched anti-online gambling interests in the US. In the back rooms and committee hearings, no one was ever going to win an argument that, "online poker wasn't really illegal if you look at nuance of gambling laws (or lack thereof), stop it with your fake morality bull****." Instead, the best play has been, "Maybe those old iPoker guys were bad. But, we're the new operators who are clean, legal, honest, and worthy of the public's trust."

That new best argument is largely shot now. "Fool me once, shame on me," has just transpired...
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-27-2016 , 11:01 PM
Or however some fancy "shame" saying goes, lol.
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-28-2016 , 12:44 PM
Quote:
Originally Posted by Monorail
Eye-opening new info in this link. The Baazov insider trading stuff goes back far longer than just the Amaya/Stars transaction. Basically every deal they were involved in going back to 2010 (if not further) allegedly involved David telling his brother Josh, who then relayed the info to their mutual friend Levett who then cut Josh checks. The Baazov family is dirty as the day is long.
"The illicit trading reportedly dates back to Amaya’s late-2010 discussions about acquiring online gambling technology firm Cryptologic. The AMF files reportedly show telephone calls between David and Josh, followed by calls from Josh to Levett, who went on to make multiple equity purchases in Cryptologic.

The AMF files reportedly show evidence of similar shenanigans involving a total of seven companies – Amaya, Cryptologic, Chartwell Technology, WMS Industries, Bwin, Intertain Group and the Oldford Group – over a five-year period.

In the case of WMS Industries, which was acquired by Scientific Games Corp for $1.42b in 2013, Josh reportedly intercepted communications between David and an attorney discussing the imminent acquisition, which Josh subsequently relayed to Levett.

Hundreds of thousands of dollars worth of WMS shares were purchased by Levett, his wife Nathalie Bensmihan, his brother Earl and three other associates, netting the six individuals over $170k in profits. Levett subsequently cut Josh two checks totaling $32,100 that were marked ‘gift’ in the memo section.

The Levett family’s Amaya-related transactions reportedly earned them over $500k in illegal profits since 2010. The AMF says a further $800k in profit was generated via illegal trades related to Amaya’s 2014 $4.9b purchase of the Oldford Group, the parent company of PokerStars and Full Tilt.

Also sharing in the inside wealth was Feras Antoon, the Montreal-based online porn baron behind Brazzers and other wanking sites, who the AMF believes pocketed $83k from illegal trades based on Amaya insider info.

The insider dealings were reportedly ongoing at the time the warrants were issued, as the AMF believes Josh, Levett and their accomplices were poised to benefit from insider knowledge of David’s recently announced plan to take Amaya private (a plan David insists is still in play, regardless of the charges)."
Three things about this, aside from the underlying central issue of insider trading:

1. The relatively small profits given the risk, time and again .... I was intrigued about the item about Josh intercepting a privileged communication between David and some legal counsel.
2. This may be the worst "trading on a brother" relationship since Billy and Jimmy Carter. (Billy and Cal Ripken does not count, that was part of the price to make/keep Cal happy and hardly a secret.)
3. The alleged payoff was in the form of checks noted as "gifts "? Seriously ?
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-28-2016 , 03:25 PM
Haha, I had all of those thoughts, as well.

I suppose getting away with those things for years gave them an arrogance that they could continue getting away with it.
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote
03-28-2016 , 04:00 PM
so, when do we find out if he is guilty?
Amaya CEO David Baazov charged with insider trading (3/23), steps down as CEO (3/29/16) Quote

      
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