Ex-Star CEO approved $50m cheque cashing facility within minutes, court hears
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More news: Ex-Star chief executive officer Matthias Bekier approved cheque cashing facilities (CCFs) within minutes for high roller gamblers, without seeking further information, in a breach of corporate duties, the Federal Court has heard.
What they said: Appearing before Justice Michael Lee, barrister Ruth Higgins who is representing ASIC said failures by directors to seek more information on Qin Sixin and Alvin Chau was a breach of their corporate obligations.
Instead, Bekier extended a $50 million credit approval to Qin within minutes of receiving a request, Higgins said.
Higgins said in the month prior to the CCF request, Star had provided Austrac with concerns regarding Qin Sixin.
"There is no explanation of any kind [...] as to how management had satisfied itself or given any consideration to concerns Qin had been involved in money laundering," Higgins said.
A "reasonable director", Higgins told the court, should have asked whether Star should be in business with these people, or extending credit to such levels.
"Star should have terminated these associations or at the very least suspended [them] to allow [time] to reach an informed conclusion about whether Star should maintain the relationship," she said.
"Failures to seek further information from management is [a] failure by Bekier [and directors]."
The case continues in Sydney on Tuesday.
Star execs failed to act on 'brazen' junket operator conduct, court hears
The news: Star Entertainment Group executives failed to take action on "particularly brazen" junket-related conduct that included possible money laundering and criminal activity, the Federal Court in Sydney has heard.
The context: Today marked the start of a six-week hearing in the Australian Securities and Investments Commission's (ASIC's) lawsuit against current and former Star executives and directors.
Representing the regulator, barrister Ruth Higgins SC told the court of reports within Star that defunct junket-operator Suncity had a dedicated space within its Sydney casino — Salon 95 — and that activities took place "under a blanket".
Within Salon 95 bags of $50 notes were allegedly tied together with elastic bands and delivered in an Esky bag to the service desk.
A junket operator works with casinos to attract high-wealth individuals to gamble.
Despite becoming aware of possible money laundering, executives and directors, Higgins added, failed to take action to terminate a relationship with Suncity or provide relevant information to the company's board.
Higgins also told the court that The Star allowed NAB customers to use China Union Pay 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.
Paula Martin, Star's chief legal and risk officer, who at the time of the alleged conduct was the casino operator's general counsel and company secretary, allegedly reviewed and permitted correspondence to NAB that was passed to CUP that "inaccurately [said the] cards were only used for non-gambling accommodation expenses", Higgins said.
Martin's conduct, Higgins added, exposed Star to harm, including criminal liability and reputational harm.
ASIC announced the lawsuit in December 2022, targeting 11 current and former directors and officers of Star at the time, over alleged breaches of corporate duties linked to money-laundering risks.
The sources: Federal Court of Australia , ASIC
