John David Rothstein, the former Aston Hill Financial sales manager, settled with Ontario Securities Commission (OSC) over insider tipping and trading allegations.
Rothstein will have to serve a two-year ban on trading and will have to pay $11,000.
This sentence is a part of a settlement agreement between Rothstein and OSC, in a case regarding the illicit activities in the Canadian gaming and online gambling company, Amaya Inc.
According to the settlement deal, Rothstein will testify in a court of law as a witness in any lawsuit regarding the related case.
The first mention of Rothstein’s name came last week when OSC issued a statement accusing him, but also two other former Aston Hill Financial executives of participating in the illegal purchase of Amaya Inc. shares, but also informing third parties about the acquisition.
The other two are Ben Cheng, former co-chief investment officer and Eric Tremblay, former CEO. Another name was also brought up – it was Frank Soave, the former CIBC Wood Gundy advisor.
According to the Rothstein’s agreement with OSC, he was unaware that Aston Hill signed a non-disclosure deal regarding the acquisition by Amaya, worth a staggering $4 billion.
Rothstein said he had acted under Cheng’s direct guidance, but also gave detailed info regarding the whole affair to Soave.
After purchasing Amaya shares, Rothstein alone earned $5,500, which will have to be surrendered as a part of his deal.
Even OSC confirmed Rothstein cooperation was somewhat crucial in the further investigation. Nevertheless, he won’t be able to participate in the investment industry in the next two years.
The case involving Amaya Inc. doesn’t end with Rothstein. David Baazov, the founder of the company, will face a trial later this year on charges of insider trading.
None of the allegations mentioned here have been proven.
However, the media have reported that Baazov sold about two-thirds of his remaining shares of the Montreal-based company Amaya for a total of $267.7 million.