Amaya Down 22% After CEO Charged With Insider Trading In Canada

Shares of Amaya Inc AYA plunged more than 22 percent after Quebec's securities regulator charged the company's CEO David Baazov for insider trading, according to a press release.

The AMF has charged Baazov, "for aiding with trades while in possession of privileged information, influencing or attempting to influence the market price of Amaya securities and communicating privileged information."

Baazov denied the allegations, and "Amaya believes they are without merit and expects Mr. Baazov will be fully exonerated."

According to Amaya, the above charges involve allegations related to a former financial advisor to Amaya and an employee.

In its statement, Amaya said it does not anticipate the charges will have any impact on the management or day-to-day affairs of the operating business.

Investigation From 2014

The Canadian regulator launched an investigation into Baazov and other executives in 2014 for insider trading ahead of its $4.9 billion acquisition of PokerStars owner Rational Group.

Amaya, a gambling website operator, said it conducted a review and found no evidence of any violations of Canadian securities laws or regulations.

"Amaya will continue to communicate with its regulators and does not currently anticipate any material negative impact on its current or potential licenses, approvals or partnerships as a result of the allegations against Baazov," the company said in a statement.

Shares of Amaya fell 22 percent at $11.05 on Wednesday.