A trial has begun scrutinizing Stars Casino over alleged illicit activities in the venue. Former executives have been accused of failing to take action against money laundering and other illegal actions on the premises.
Star Entertainment Group’s legal team appeared at federal court as the hearing began, where the Australian Securities and Investments Commission has alleged former executives of Stars Casino breached their obligations with the possibility of money laundering in their Sydney, Brisbane, and Gold Coast locations.
Australian Securities and Investments Commission barrister Ruth Higgins SC said as the submissions began: “This is a case about casinos and risk” and “Not the risk involved when a player bets black instead of red in roulette or twists instead of sticking in blackjack.” The commission seeks penalties, including bans for affected parties from managing a corporation for a yet-to-be-determined amount of time.
According to Higgins, former executives of Star Entertainment Group behaved in “so incurious and complacent a manner” between 2016 and 2022. The findings were that the former executives allowed unacceptable legal, regulatory, reputational, and financial risks to the company.
Higgins told Justice Michael Lee of the firm’s relationships with junket operators overseas, largely in Suncity, and cited evidence of illicit activities and organized crime. “ASIC’s case concerns the maintenance and escalation of these business relationships despite a slew of profoundly troubling, publicly available information about junkets.”
These junkets were “rife for exploitation” because the origins of the funds could be obscured. It led to huge amounts of money at risk, with Chinese triads coming into Australia following the gambling prohibition in the country, according to Higgens.
Furthermore, bags of $50 notes were tied together with rubber bands at Salon 95, Suncity’s dedicated space in The Star Sydney. It’s said that the money was delivered in blue esky bags to the service desk, where junket staff hid themselves from CCTV cameras by hiding underneath blankets.
The Australian Securities and Investments Commission alleges that Matthias Bekier (former chief executive), Paula Martin (former company secretary and general counsel), and Greg Hawkins (former chief casino operator) failed to terminate the relationship with Suncity, or tell the board of the risks associated with the junket operators.
Higgens told the court that the three former executives were aware of the repeated suspicious activity at The Star Sydney by Suncity personnel.
Also in the news, a new $275 million casino was approved in Cedar Rapids.
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