Former Star CEO faces eight-year ban as ASIC pursues penalties tied to Suncity scandal

Australia’s corporate regulator asked the Federal Court on Wednesday to impose a A$1.3 million ($935,000) fine and an eight-year directorship ban on former Star Entertainment Group CEO Matt Bekier over misconduct linked to junket operator Suncity.

The Australian Securities and Investments Commission argued Bekier, who led Star from April 2014 to March 2022, had shown neither remorse nor understanding of his failings and that the public needed protection from him holding another senior executive role.

The Federal Court ruled against Bekier in March, finding he breached his duties by failing to inform Star’s board about troubling conduct tied to Suncity, once the casino operator’s largest source of VIP gambling revenue.

The same ruling also went against Paula Martin, Star’s former general counsel. ASIC is seeking a A$1.1 million fine and a seven-year ban against Martin.

Court proceedings allege Suncity channelled A$2.1 billion ($1.5 billion) into Star during the 2017 financial year alone.

Between 2018 and 2019, Suncity staff at Star’s casinos were allegedly observed accepting cash deliveries in cardboard boxes and cooler bags, while others hid beneath blankets to avoid surveillance cameras.

An inquiry found Bekier knew about the conduct but failed to inform Star’s board.

Bekier and Martin were also found to have known Star gave misleading information to National Australia Bank in 2020 regarding transactions involving China UnionPay cards.

According to the inquiry, concerns that gamblers were using the cards for prohibited transactions were understated to the bank, while the board again was not informed.

Suncity owner Alvin Chau is serving a prison sentence in Macau after being convicted of offences including money laundering, illegal gambling, fraud and running a criminal organisation.

Bekier’s lawyer, Justin Williams, argued an 18-month ban would be more proportionate because his client had not acted with intent. Williams also argued Star would still have faced the 2022 Bell Inquiry, the loss of its casino licence and an A$100 million regulatory fine even if Bekier had acted properly.

Justice Michael Lee questioned whether the absence of remorse should be treated neutrally, saying such an approach could create perverse incentives for defendants intending to appeal.

Former Star executives Greg Hawkins and Harry Theodore previously settled related proceedings and accepted fines and temporary bans.

Star itself paid A$150 million to ASIC in February 2023 to settle anti-money laundering contraventions.

The New South Wales Independent Casino Commission stripped Star of its Sydney casino licence in October 2022 and placed the casino under independent manager Nicholas Weeks. Regulators have repeatedly extended the arrangement.

Queensland regulators separately deferred the suspension of Star’s Gold Coast licence until September 2026.