More legal problems for Baazov

Former Amaya CEO David Baazov, already facing insider trading charges in Quebec over the $4.9 billion Rational Group acquisition (see previous reports) has had more stress placed on him this week by the news that a Kenyan charity has launched litigation claiming payment of a Sh73 million (US$ 707,000) obligation.

Local media reports name the charity as the Lion’s Heart Self Help Group, which claims that Baazov, former Amaya executives Daniel Sebag and Benjamin Ahdool, and Amaya Kenyan subsidiary Amaya Gaming Group (K) Ltd “embezzled” the money by not paying over an agreed 25 percent of earnings from the Kwachu Mamilli lottery.

The 2010 agreement was breached when Amaya Gaming Group (K) Ltd failed to pay over the 25 percent it had agreed to, it is alleged, and the issue has also embroiled the NIC Bank, which the charity alleges colluded with Baazov et al regarding accounts through which the contested revenue was channelled.

In an increasingly messy dispute, the charity has been joined by Amaya Kenya director Kennedy Nyagudi, who alleges the bank should not have opened accounts unless these were authorised by Baazov and himself.

Although the bank was aware of this restriction, it opened accounts that allowed other Amaya executives to move lottery revenues out of Kenya, Nyagudi claims.

Lion’s Heart claims that Baazov originally tried to negotiate a settlement for a smaller amount than that due.

Amaya representatives have since denied any wrongdoing, calling the Lion’s Heart claims “false and ridiculous” and insisting that the Kenyan project was handled honestly, ethically and transparently.

The Lion’s Heart case will be heard just a week before Baazov faces his insider trading accusers in a Quebec Court on December 11.