Former Star CEO Matthias Bekier, general counsel Paula Martin breached Corporations Act
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The news: Federal Court Justice Michael Lee has ruled that former Star Casino CEO Matthias Bekier and former general counsel Paula Martin breached their duties under the Corporations Act but seven other non-executive directors did not.
Bekier and Martin were found to have broken the law in some of the accusations brought by ASIC in relation to an insufficient focus on the risks of money laundering and reported criminal associations of Star’s partners.
However, Lee ruled that ASIC was not able to make the case that former non-executive directors John O’Neill, Richard Sheppard, Gerard Bradley, Sally Pitkin, Benjamin Heap and Zlatko Todorcevski contravened the section 180 of the Corporations Act.
The context: In an oral reading of the judgment, Lee issued a warning to directors that it is not a defence to say that voluminous board meeting packets have become unwieldy when considering whether it is reasonable to give consideration to specific bits of information.
Nor is it appropriate to outsource analysis of board documents to artificial intelligence tools.
The written judgement runs over 500 pages which he said “reflects the number of defendants that need to make a vast number of factual findings and the convoluted way ASIC pleaded its case”.
He later noted that “ASIC tendered a tsunami of documentary material” relating to Star and its subsidiaries. Lee will fix a date to issue penalty orders within the next seven days.
Claims against members of the Star board between 2017 and 2019 targeted former chair John O’Neill and former managing director and CEO Matthias Bekier as well as Kathleen Lahey, Richard Sheppard, Gerard Bradley, Sally Pitkin, Benjamin Heap and Zlatko Todorcevski.
ASIC argued that the board members approved the expansion of the casino operator’s relationship with individuals with criminal links and did not take further enquiries when provided with information about money laundering affecting the Star.
Further allegations against Bekier, former company secretary and group general counsel Paula Martin and former chief casino officer Greg Hawkins include: not adequately addressing money laundering risks relating to dealings with Asian gambling junket Suncity and not appropriately escalating money laundering issues to the board.
ASIC also alleged that Martin and former chief financial officer Harry Theodore knowingly allowed NAB to be provided with misleading statements regarding the use of debit cards issued by China Union Pay at NAB ATMs on casino premises.
Theodore and Hawkins previously admitted they breached their duties and settled the cases brought against them. Lee did not make a decision with regards to those cases.
The trial commenced on 10 February 2025 and concluded on 28 May 2025.
The sources: ASIC media release, Federal Court of Australia
