Former top executives of The Star Entertainment Group are facing scrutiny in a Federal Court hearing, accused by the Australian Securities and Investments Commission (ASIC) of prioritising profit over risk management related to potential money laundering at the company’s casinos in Sydney, Brisbane, and Gold Coast. The allegations highlight a negligence that persisted from November 2016 to March 2022, as the executives allegedly ignored numerous red flags linked to junket operators, notably Suncity, which were reportedly tied to organised crime.
ASIC’s barrister, Ruth Higgins SC, described the case as revolving around the failures of the casino’s management to curb unacceptable legal, regulatory, financial, and reputational risks, despite clear evidence of suspicious activities. She mentioned that cash from these junkets, obscured in various ways, posed significant risks, particularly with substantial sums flowing from China following a gambling ban there.
High-profile former executives, including Matthias Bekier and Paula Martin, are accused of not acting promptly or informing the board regarding the concerning activities of Suncity. Additionally, the former board members are alleged to have neglected their oversight responsibilities regarding these risky partnerships. ASIC is pursuing penalties and bans on corporate management roles for those involved, as The Star continues to grapple with declining revenues and prior regulatory violations, having already agreed to pay $150 million in penalties for failing to comply with anti-money laundering laws.