The Amaya Gaming Group headquarters are seen Friday, June 13, 2014 in Montreal. Allegations of insider trading against 13 people affiliated with the ex-CEO of online gambling company Amaya Inc. will be discussed this morning at a hearing by an independent tribunal overseeing Quebec's financial sector. THE CANADIAN PRESS/Ryan RemiorzThe Canadian Press
The lead investigator in the insider trading case against associates of Amaya says the Quebec securities regulator has no direct proof that privileged information was shared in phone calls preceding several acquisitions.
Under cross-examination before an independent tribunal, Xavier Saint-Pierre said he doesn't know exactly what was said in a series of calls among officials working for the online gambling company or between family members in relation to the acquisitions of Cryptologic Inc., Chartwell Technology and WMS Industries by Scientific Games.
In some cases he couldn't be sure calls even went through.
However, Saint-Pierre said the parties also communicated through texts and emails.
"Circumstantial evidence shows there was a transmission of privileged information," he said during a grilling by the lawyer for former Amaya CEO David Baazov.
L'Autorite des marches financiers, Quebec's securities regulator, alleges that 12 people used access to privileged information about impending Amaya acquisitions to reap nearly $1.5-million in profit over five years.
The AMF has filed a report with the tribunal that contains a list of emails, text messages and phone calls, along with trading activity among the accused parties, upon which it bases its allegations.
No charges have been laid against the 12 individuals. However, several bank and trading accounts have been frozen since March while the AMF continues to investigate.
The named individuals dropped plans to contest the orders after entering into agreements with the regulator.
David Baazov is not subject to cease trading orders, but the AMF has alleged that Baazov and his brother Josh benefited from a kickback scheme in which payments were received in exchange for sharing privileged information.
Saint-Pierre referred to an email that Craig Levett sent to David Baazov's brother Josh.
"Here is what we owe your brother. I will have a check for him tomorrow and you too."
Saint-Pierre said it has not found any related cheques paid to David Baazov but continues to evaluate the lengthy bank records.
David Baazov spokesman Ian Robertson said his client is "innocent of any wrongdoing."
Baazov faces criminal charges before the Quebec Court, including influencing or attempting to influence the market price of the securities of Amaya and communicating privileged information. He resigned as CEO last month and cut all ties with the company, though is a major shareholder.
He was charged as part of an investigation by the AMF that resulted in 23 charges against three people and three companies.
The hearing is slated to resume in early October. The lawyer for Josh Baazov is also expected to ask Saint-Pierre questions.