The Australian Securities and Investments Commission (ASIC) initiated significant legal proceedings against eleven past and present board members and high-level managers of Star Entertainment Group, a major Australian casino enterprise. At the core of the issue is ASIC’s claim that these senior officials, including former chairman John O’Neill and current chairman Ben Heap (who intends to fight the accusations), approved the growth of Star’s business ties with individuals suspected of organized crime affiliations. This expansion, ASIC asserts, proceeded without sufficiently mitigating the substantial threat of illicit financial activities.
This legal case, focusing on purported violations of anti-money laundering regulations, also involves other crucial individuals who held positions on Star’s board between 2017 and 2019: Matthias Bekier, Kathleen Lahey, Richard Sheppard, Gerard Bradley, Sally Pitkin, and Zlatko Todorcevski.
Increasing the seriousness of the circumstances, Australia’s financial regulator specifically accuses Bekier, alongside former company secretary and group general counsel Paula Martin and former chief casino officer Greg Hawkins, of neglecting to adequately manage the risk of money laundering connected to Star’s association with Suncity Group, a significant entity in the Asian gaming industry. This oversight, ASIC maintains, constitutes a violation of their responsibilities.
The foundation of ASIC’s argument hinges on the allegation that Star sustained its profitable collaboration with Suncity despite possessing knowledge of the latter’s purported connections to criminal factions. Moreover, ASIC posits that Star’s board, when presented with details regarding these concerning associations, did not undertake suitable measures.
Star Entertainment Group has issued a statement regarding the civil suit brought against them by the Australian Securities and Investments Commission (ASIC). The company acknowledged the legal action targeting several current and former board members, in addition to one past executive.
The lawsuit revolves around claims that these individuals breached the Corporations Act of 2001, particularly section 180(1), which pertains to director responsibilities. These accusations arise from inquiries conducted by Adam Bell SC in New South Wales and Robert Gotterson AO KC in Queensland.
Current board members Ben Heap and Katie Lahey, also named in the suit, reiterated their dedication to the board restructuring process revealed earlier this year. They will vacate their positions once new directors are appointed and a seamless handover strategy is implemented.
This legal proceeding follows a substantial $100 million AUD (roughly $67.6 million USD) fine levied on Star Entertainment Group by the Queensland authorities for major shortcomings at their gaming establishments.
