‘Negligent’ ex-Star boss could be hit with $1.3m fine
Miklos Bolza |
Star’s ex-boss has shown no remorse after failing to disclose possible criminal risks of overseas junkets which drew billions of dollars into the casino, a court has been told.
Former Star chief executive Matthias Bekier failed to inform the board of suspicious conduct committed by Chinese junket operator Suncity in 2018 and 2019, the Federal Court found in March.
That included bundles of cash being delivered to the service desk in blue cooler bags or cardboard boxes and junket staff hiding under blankets to stay out of the view of CCTV cameras.
The Australian Securities and Investments Commission successfully sued Mr Bekier and former Star general counsel Paula Martin for breaches of their duties.
The watchdog on Wednesday sought hefty fines against the pair.
The ex-chief executive should pay $1.3 million for his serious misconduct, barrister David Arnott SC told Justice Michael Lee.
“The label of negligence we say doesn’t give full force to what Your Honour’s actually found,” he said.
While he had not deliberately ignored the ringing alarm bells, Mr Bekier should be banned from being a director for eight years after showing no remorse or insight, Mr Arnott said.
The community needed to be protected from the former chief executive holding another executive position, he argued.
Mr Bekier’s barrister submitted a disqualification period of 18 months was preferable.
The court found the ex-chief executive was merely negligent and did not intentionally seek to cause any harm, Justin Williams SC argued.
He disputed ASIC’s suggestions Mr Bekier’s contraventions caused damage or loss to the company.
Mr Williams said even if his client had acted appropriately, there still would have been a damning report into Star’s failings in 2022, the stripping of its licence and a $100 million penalty from the casino watchdog.
Justice Lee had issues when told Mr Bekier’s lack of contrition was not an aggravating factor because he intended to appeal.
“What do we do? We don’t do pecuniary penalties until after the appeal so people can come along and do performative remorse?” the judge asked.
Mr Williams will discuss what penalty is appropriate as the hearing continues on Thursday.
Junkets and their international VIP players were highly lucrative to Star, bringing in tens of billions of dollars to the business annually.
Suncity was its largest junket partner, drawing $2.1 billion into the casino group in the 2017 financial year.
Star also heard Suncity’s owner Alvin Chau had his visa denied by Australian immigration after bundles of cash were seized in a hotel room and he had alleged links to a Macau triad.
Ms Martin and Mr Bekier also knew the casino misled lender National Australia Bank in 2020 about concerns gamblers were using their China UnionPay cards for gambling, which was prohibited by the foreign card scheme.
The pair did not inform the board of this.
ASIC has urged the court to fine Ms Martin $1.1. million and ban her from acting as a director for seven years.
She has not opposed this disqualification period.
Her barrister will make submissions about penalty and other issues on Thursday.
In February 2025, Star’s former chief casino officer Greg Hawkins settled his case with ASIC, agreeing to pay $180,000 in penalties and an 18-month ban.
At the same time, former chief financial officer Harry Theodore agreed to pay a penalty of $60,000 and was banned from managing corporations for nine months.
The breaches of anti-money laundering laws by allowing potential criminals to use the casino saw Star agree to pay $150 million in penalties to ASIC in February 2023.
AAP