Financial Conduct Authority in the UK confirms enquiries into "…recent, possibly-suspicious, large purchases of stock by directors of the company."
The online gambling information site Gambling911 has reported that recent Bwin.Party share buys by certain directors of the company are being scrutinised by the UK Financial Conduct Authority.
911 claims that a FCA source has informed it that the regulator is investigating "…recent, possibly-suspicious, large purchases of stock by directors of the company."
The article highlights major purchases by non-executive director Helmut Kern just prior to a shares buy-back initiative by the company which drove share prices higher.
"Other company directors also purchased stock in the firm, and some financial experts told Gambling911.com that the timing of the stock purchases indicate that the buys may be part of an illegal scheme involving 'front-running'. Front-running is when stock traders illegally use inside information about pending stock purchases or sales by others to make advantageous deals for themselves first," the article notes.
The FCA enquiries are apparently focused on recent stock purchases, their timing, the individuals who made the purchases and the circumstances under which the purchases were made.
Ron Geffner, a New York attorney who previously worked for the U.S. Securities and Exchange Commission (SEC) investigating criminal violations of Federal and State securities laws, told Gambling911:
"The timing of the transactions raises a question about the obligations the directors have to the shareholders of the company. If I had an interest in the company I would inquire further regarding the timing of the events. Knowing that the directors planned to repurchase shares, or buy back, in a short time frame, while there may be explainable reasons, the timing seems suspicious."
Online Casino News Courtesy of Infopowa