The Australian financial regulator, ASIC, has initiated a significant legal action against eleven past and present board members and high-ranking officials at Star Entertainment Group. This includes prominent figures like former chairman John O’Neill and the incumbent chairman, Ben Heap. ASIC contends that these directors prioritized Star’s associations with individuals suspected of organized crime affiliations over resolving serious concerns about money laundering. Heap has indicated his intention to contest these accusations.
The legal proceedings, centered on alleged violations of anti-money laundering regulations, also target other crucial individuals who held positions on the company’s board between 2017 and 2019: Matthias Bekier, Kathleen Lahey, Richard Sheppard, Gerard Bradley, Sally Pitkin, and Zlatko Todorcevski.
Australia’s financial overseer further alleges that Bekier, along with former company secretary and group general counsel Paula Martin and former chief casino officer Greg Hawkins, fell short in their responsibilities by not sufficiently addressing the money laundering hazards linked to their collaboration with Suncity, a major entity in the Asian gambling arena.
In essence, ASIC posits that Star maintained its profitable association with Suncity despite possessing knowledge of the company’s purported criminal connections. The regulatory body also accuses board members of inactivity and deliberately overlooking warning signs regarding money laundering ties.
The Australian Securities and Investments Commission (ASIC) initiated legal action against a group of current and former board members, along with one previous executive, of Star Entertainment Group Limited. This legal step stems from an ASIC inquiry and pertains to potential violations of the Corporations Act 2001 (Cth) regarding information shared during investigations conducted by Adam Bell SC in New South Wales and Robert Gotterson AO KC in Queensland.
Included in the lawsuit are current board members Ben Heap and Katie Lahey. Both individuals remain dedicated to the board restructuring process declared by Star earlier this year and will resign once new selections are confirmed and a seamless handover is guaranteed.
This situation arises shortly after a A$100 million (US$67.6 million) sanction levied on Star by the Queensland authorities the preceding week. The substantial fine was imposed due to “grave shortcomings” at the company’s gaming establishments.
