The Baazov Brothers: Crime Without Punishment

The rise and fall of the “king” of the gambling business. In the 2010s, David Baazov received some general attention. First as a young successful businessman who became the “king of poker” at the age of 34, and then as a defendant in many famous scandals.

The Bazov family emigrated from Israel to Canada in the early 1980s. The youngest of his brothers, David, showed outstanding mathematical abilities and a strong personality from an early age. At the age of 16, he announced to his parents that he would quit school, and as a result his family kicked him out of the house. For a few weeks he slept on a park bench. But he quickly found support and opened a computer hardware store. After a while, he settled with his family.

In 2005, David sold the company and began developing software primarily related to games. That’s why he founded the Amaya Gaming Company. In 2010, the company’s revenue exceeded $ 6 million. Meanwhile, David acquired a small business that was developing game software and auxiliary tools.

In 2012, Bazov makes a big deal — he Purchase The manufacturer of the Cadillac Jack slot machine is $ 117 million. A year later, David goes to the next level and buys the Rational Group brand, which owned the legendary PokerStars and Full Titl. The transaction value was $ 4.9 billion. To pay the total, Baazov donated $ 3 billion and the rest was invested by BlackStone. At the same time, David proves to be a good businessman and a good negotiator.

After this merger, David’s name became widely known in the gambling world. A very bold and successful deal has brought fame … and has caught the attention of state regulators. Some organizations (British Financial Behavior Oversight Agency, Ontario Securities Commission, Canadian Investment Industry Regulatory Authority, Wall Street Self-Regulatory Authority, Financial Industry Regulatory Authority) are like how smaller companies are like Rational Group. I started wondering if I bought a giant. They started investigating, but found that the story wasn’t very smooth and that the behavior of the “math genius” was far from legitimate.

In 2016, a document leak from a Mossack Fonseca law firm caused a scandal on the Panama Papers. Thanks to the information received from the document, the Financial Markets Commission (AMF) Blame David Versov A search of trading company offices using insider information showed that stocks fell by 20%. David was charged with five counts. He firmly denied all charges and stated that he would prove his innocence. However, he couldn’t manage to do so, “going on vacation” in early 2016, and six months later, he was dismissed by a director of Amaya. The company has been rebranded to the Star Group.

Another defendant in the criminal case is David’s brother Josh (also known as Josh). Ofer Baazov). According to the investigation, David gave his brother inside information about Amaya’s company, and Josh leaked that information to his partner Lebet. The latter provided it to stakeholders.This allowed the partner to earn About $ 1.5 million..

Ofer and Levett are already Spent a rough past in the gambling industry: They were associated with the gambling site Beton USA, which went bankrupt 10 years ago and “disappeared” at least $ 1 million in bad customer deposits. Also, according to various AMF reports, Baazov and Levett were related to the operation of Oddsmaker.com.

In 2017, interesting information about Amaya’s management came out. It turns out that the real power is not in the hands of the talented David, but in the hands of his brother Josh Orfer. He and his partner, Craig Lebet, have owned 75% of the company since at least 2007. My brother avoided advertising on charges of fraud in possession of drugs (arrested for 90 days in 1995) and a lottery for prizes. TV shop. In the final case, the court ruled Ofer to pay the victim $ 777,000 in compensation. At that time, Offer began to call himself Josh. All these facts did not fit well with the image of a solid company. Therefore, David, the “golden boy,” was always visible. The brothers agreed that no significant decision would be made without Josh.

As is often the case, one criminal case raises the other.Bazov was accused of bribing the Governor of New York in 2014 Illegal donation of $ 25,000 For Andrew Cuomo’s campaign. The motive for such generosity could be a bill to legalize state online casinos.

The brothers were also noted in Africa. 2017, non-profit Lion’s Heart Self Help Blame David Versov Of fraudulent donations. In 2010, Amaya’s subsidiary held the M-Lotto and Kwachu 6/48 lottery tickets in Kenya. It was announced that 25% of the proceeds will be donated to charity. However, Lion’s Heart Self Help representatives have never seen the money. The money accumulated in the deposit account of Kenya NIC Bank was later withdrawn overseas.

Later, Bazov was also charged in a civil lawsuit. In 2017, another interesting story came out with the participation of Bazov. Kalani Lala, president of investment company KBC Aldini Capital, Proceeded against him.. According to plaintiffs, David used his name and signature illegally to make it look good and facilitate the acquisition of the company. It turns out that the US Securities and Exchange Commission questioned Bazov’s financial credibility and interviewed all of its specific shareholders after launching an investigation. Karani Lara said the misuse of his name had a serious impact on his reputation, mainly dealing with Muslims who oppose the gambling business and those who do it.

2018 Florida-based Gideon van Kessel Proceedings He accused the Star Group of not being paid for the work he did. According to him, he worked as a consultant and strategic advisor for four years. He was hired by former director David Baazov to search, prepare and acquire promising companies related to online games. Cassel and some other employees stopped paying salaries after Quebec’s securities regulators became interested in Amaya Inc’s activities in 2014. Stargroup representatives declined to comment on Cassel’s allegations.

In 2018, David appeared in a Canadian court. The proceedings lasted for about two years, and Bazov managed to evade liability in a paradoxical way. The prosecutor accidentally sent 320,000 confidential documents to David’s lawyer and then asked him to return them. To say the least, this case is not typical of Canadian legal proceedings.lawyer Blame AMF Failure to present the evidence in a proper manner complicates the defense of the accused. The judge upheld Bazov and the proceedings were closed due to a procedural error.

Still the company and former executives Had to pay about $ 30 million Compensation for investors affected by the disclosure of confidential information after filing a class action.

As you can see, the happiness of the gambling business is pretty capricious. However, the brothers continue to be very volatile. In any case, they never leave the gaming business. Now they are, for example, Participate in the construction of a casino In the reserved area of ​​Quebec. Over time, we will see if this process will turn into a new scandal.

The Baazov Brothers: Crime Without Punishment Source link The Baazov Brothers: Crime Without Punishment

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