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An investigation into recent stock trades involving bwin.party, an online betting company, is being conducted, Gambling911.com can reveal in a world exclusive report!
A source tells Gambling911.com that the proper authorities are looking into recent, possibly-suspicious, large purchases of stock by directors of the company.
Gibraltar-based bwin.party (www.bwinparty.com) was formed in 2011 when bwin Entertainment Interactive AG and PartyGaming PLC merged and became one of the world's largest stock market-listed online gambling companies.
The company on its website offers online wagering on sports, bingo, poker and other casino games.
Gambling911.com reported earlier this month that bwin.party's non-executive director, Helmut Kern, had recently purchased 60,000 shares in the company in a buyback.
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 source told Gambling911.com that the "relevant" authorities are investigating the bwin.party stock purchases, their timing, the individuals who made the purchases and the circumstances under which the purchases were made.
Gambling911.com asked 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, for his reaction to the news that bwin.party is being investigated by the FCA, the British counterpart of the SEC.
Geffner, who is not involved in the bwin.party probe, told Gambling911.com: "As a former regulator, the timing of events in connection with director purchases of securities in a company buyback should be called into question. I question the timing, whether it was done pursuant to plans that were put in place or not.
"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."
By Tom Somach
Gambling911.com Staff Writer
