The Australian Securities and Investments Commission (ASIC) has initiated a substantial legal case against Star Entertainment Group, aiming to impose significant civil fines on 11 former and present directors and high-ranking officials.
Included in the regulatory body’s allegations are former chairman John O’Neill and current chairman Ben Heap. ASIC asserts that rather than tackling substantial concerns about illicit financial activities, board members, including these individuals, opted to prioritize Star’s connections with persons suspected of links to unlawful organizations. Heap has declared his plan to contest these accusations.
This legal proceeding, arising from purported breaches of anti-money laundering regulations, also involves other crucial figures who held positions on the company’s board between 2017 and 2019: Matthias Bekier, Kathleen Lahey, Richard Sheppard, Gerard Bradley, Sally Pitkin, and Zlatko Todorcevski.
Moreover, ASIC’s lawsuit accuses Bekier, in conjunction with former company secretary and group general counsel Paula Martin and former chief casino officer Greg Hawkins, of neglecting to adequately manage the money laundering hazards connected with transactions involving Suncity, a major Asian gambling tour operator. This omission, ASIC argues, represents a violation of their responsibilities.
The core of ASIC’s assertion is that Star maintained its affiliation with Suncity despite possessing knowledge of its purported criminal associations. The regulatory agency further contends that board members neglected to implement suitable measures when presented with data concerning these illicit finance connections.
The Star Entertainment Corporation issued a communication regarding the litigation initiated against them by the Australian Securities & Investments Commission (ASIC). They recognize the civil actions filed in Federal Court concerning several present and past board members and high-ranking officials.
The legal case centers around purported breaches of the Corporations Act 2001 (Cth), particularly section 180(1), connected to issues previously examined by ASIC and assessed by distinguished legal professionals. Although not directly mentioned in the initial text, this presumably pertains to the investigations conducted by Adam Bell SC in New South Wales and Robert Gotterson AO KC in Queensland, which revealed significant deficiencies in Star’s gaming establishment operations.
Current board members Ben Heap and Katie Lahey, who are identified in the lawsuit, have reiterated their dedication to the board restructuring process declared earlier this year. This reorganization comes after a substantial $100 million (USD $67.6 million) fine levied on Star by the Queensland administration for these very “grave shortcomings.” Heap and Lahey will vacate their positions once supplementary directors are designated and a seamless handover strategy is established.
