Authorities with the Ontario Securities Commission (OSC) are investigating an analyst accused of tipping off friends about the 2014 Amaya deal, The Globe and Mail reported.
Majd Kitmitto, a senior analyst at Aston Hill Asset Management, didn’t buy any shares, but investigators said he told an officemate, and then a roommate, about the pending acquisition.
According to the securities regulator, Kitmitto received a call from Canaccord Genuity Group in April 2014 asking if Aston Hill would like to be part of Amaya’s acquisition of the parent company of online poker giant PokerStars.
Despite signing a non-disclosure agreement, OSC authorities said Kitmitto told his officemate, Steven Vannatta, about “material, non-public information about Amaya.” This led to Vannatta snapping up CAD31,650 (US$24,372) worth of Amaya shares, which he then sold for CAD96,316 (US$74,170) profit after the official announcement was made on June 12. And in the spirit of sharing, Vannatta also reportedly tipped off four of his relatives about the Amaya deal—resulting in them pocketing a combined profit of CAD195,000 (US$150,163).