'Not a desirable practice': ex-Star CEO questioned on China Union Pay cards
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The news: Former Star Entertainment Group boss, Matthias Bekier has told a Federal Court in Sydney that he gave false information to local bank NAB regarding the use of China Union Pay cards for gambling, despite the card issuer prohibiting the use of its cards for gambling.
Asked by barrister Ruth Higgins SC — appearing on behalf of the Australian Securities and Investments Commission (ASIC) — "what is the dance in which [Bekier] thought [he was] involved with NAB and CUP", Bekier said to ensure the cards were ultimately allowed for gambling.
Bekier told the court it was "not a desirable practice" and not something "I am proud to have been associated with," and while the purpose wasn't to provide dishonest information to the People's Bank of China, that was the effect.
The context: ASIC's lawsuit against current and former Star executives and directors, announced in December 2022, alleged breaches of corporate duties linked to money-laundering risks.
In opening arguments in the case last month, Higgins told the court The Star allowed NAB customers to use China Union Pay (CUP) cards "for the sole purposes of gambling". This was despite CUP "repeatedly" telling The Star, through NAB, that the use of cards for gambling was prohibited, Higgins said.
What they said: In cross-examination today, Higgins put to Bekier that his goal to ensure the cards could be used for gambling "required" him to tell NAB matters he understood to be false and that NAB would then convey that information to CUP.
Bekier agreed.
"And you thought everyone was in on that?" Higgins asked.
"Yes", Bekier said, before Higgins put to him that the ultimate goal was to avoid regulatory fines from China.
"And collect fees along the way," Bekier added.
When asked why he hadn't informed the board of the use of cards in this manner in March 2020, Bekier said Covid pandemic shutdowns meant the topic wasn't "top of mind".
As Bekier said he believed all parties to be "in on" the card-use understanding, he didn't think the company had provided misleading information.
