Description: Quebec securities market overseer AMF has uncovered an insider trading scheme at Amaya, the company which took over gambling hub Pokerstars in 2014. The insider trading dates back a number of years prior to the Pokerstars purchase. Allegedly, the insiders provided information on planned takeover deals with those making trades paying kickbacks on the profits.
Date: September 7, 2016; updated September 8, 2016
1) What are the ethical issues around insider training?
2) If you were an accountant at AMF, can you think of any procedures you could put in place to prevent or detect this type of insider trading?
3) The first chapter of Wiley’s Financial Accounting: Tools for Business Decision-Making, discusses the importance of ethics for accounting. What lessons from this story on Amaya can you tie in with the discussion in Chapter One?