Details of Amaya Investigation Revealed

The Quebec court removed a ban on publicizing the warrant was used by Autorité des Marchés Financiers (AMF) to seize computers, e-mails and phone records from three Amaya officials.

Search warrant gave a clearer picture of the individuals targeted by the investigation of the company. The document revealed that AMF also seized documents and files from Amaya’s deal adviser Canaccord Genuity Group. Senior executive of Canaccord Genuity Group as well as broker and broker’s assistant were under investigation. It is unclear if this investigation is still ongoing as it was not mentioned in the document.

It was also revealed that AMF seized files from 15 brokers at Manulife Montreal Securities branch but the name of those who were under the investigation were redacted from the warrant.

However Globe and Mail, which followed the Amaya probe, revealed the identities of two Canaccord employees whose files were sized by des Marchés Financiers. The names that were redacted from the warrant and were targeted by the investigation are those of Peter Kirby (broker) and Stuart Raftus (CEO of Canccarod wealth management unit).

As the Globe and Mail reported, 40 clients of Canaccord were mentioned in the warrant because of trading the Amaya stock. It was also discovered that majority of those clients were Peter Kirby’s clients.

In the weeks preceding the announcement of Rational Group acquisition, there was a rapid, sudden growth in Amaya stock value. It was believed that suspicious jump was the only reason that AMF began investigation.

However the document revealed that investigation has been initiated by two whistleblowers, one of them identified as Manulife employee. AMF was then alerted by these two persons about suspicious activities involving Amaya’s stock.

Amaya’s Canadian offices were raided back in December when AMF seized files and documents mentioned in the article. The company recently stated that they will continue to cooperate with AMF and that they will provide the information related to investigation when it is permitted.

There is still no evidence that David Bazzov, Amaya or its employees have violated Canadian Securities laws as AMF did not initiate any legal proceedings against the company. Baazov recently explained that investigation should be taken seriously but it shouldn't be blown out of proportions.