The Australian Securities and Investments Commission (ASIC) is pursuing legal action against eleven past and present directors and high-ranking officials from Star Entertainment Group, alleging significant violations of financial crime statutes.
Former chairman John O’Neill and current chairman Ben Heap are among those facing consequences. ASIC asserts that the board, rather than resolving widespread money laundering concerns, opted to strengthen ties with dubious individuals connected to organized crime. Heap has stated his intention to contest the accusations.
The legal proceedings revolve around purported breaches of anti-money laundering rules and also implicate former board members who held positions between 2017 and 2019: Matthias Bekier, Kathleen Lahey, Richard Sheppard, Gerard Bradley, Sally Pitkin, and Zlatko Todorcevski.
Australia’s financial regulator further alleges that former CEO Matthias Bekier, along with former company secretary and group general counsel Paula Martin and former chief casino officer Greg Hawkins, neglected their responsibilities by not adequately managing the money laundering hazards associated with their collaboration with Asian junket operator, Suncity Group.
ASIC maintains that Star persisted in its dealings with Suncity despite possessing knowledge of their alleged criminal affiliations. They also accuse board members of deliberately ignoring information regarding these connections.
Star Entertainment Group has issued a statement regarding the civil suit brought against them by the Australian Securities and Investments Commission (ASIC). The firm acknowledges that ASIC has commenced legal proceedings in Federal Court against a number of current and former board members, in addition to one former high-ranking officer.
The legal action revolves around claims that these individuals breached the Corporations Act of 2001, particularly section 180(1), which pertains to director responsibilities. These claims originate from matters previously under investigation in New South Wales and Queensland.
Although Star Entertainment Group refrained from providing details about the lawsuit, they did verify that current board members Ben Heap and Katie Lahey are named in the suit. Both Heap and Lahey have expressed their backing for the board restructuring process revealed earlier this year and will be relinquishing their positions once appropriate successors have been designated.
This legal maneuver comes shortly after a $100 million AUD penalty imposed on Star Entertainment Group by the Queensland government. This penalty was issued following the discovery of “grave shortcomings” at the company’s gaming establishments.
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