Star gambler’s China bank card paid debt
Jack Gramenz |
A Chinese-born Australian property developer who gambled at The Star casino for more than 20 years bought chips and paid debts with the same Chinese bank cards that were being used to top up customer accounts that could conceal gambling expenses, an inquiry has heard.
A National Australia Bank executive handling transactions for the China Union Pay cards at The Star also never received a written confirmation the money wasn’t used to gamble after CUP raised concerns about large transactions.
The inquiry heard last week The Star allowed high-rollers to bill $900 million as hotel expenses to dodge China’s tight anti-gambling and capital flight laws.
CUP cards were used to transfer money to client’s hotel accounts, with statements written up as costs of their stay.
The Star’s former chief risk officer Paul McWilliams told the hearing on Monday he heard an “anecdotal mention” that “somebody might have put an amount withdrawn through China Union Pay through the system as accommodation or hospitality charges”, but he was under the impression it was an anomaly.
Mr McWilliams raised the issue internally and asked whether it was a cause for concern but never received a response, he told the hearing.
Phillip Dong Fang Lee told the hearing through an interpreter earlier on Monday he’d been a diamond member of the casino for more than 15 years and gambled there for more than 20, primarily on his own in private rooms.
He lives in Sydney and told the hearing he did not stay in the hotel when he gambled.
As well as bank accounts in Australia and Singapore, Mr Lee also had more than five bank accounts in mainland China, with “close to 20” associated CUP cards.
Mr Lee told the hearing he would give one of his CUP cards to a casino relationship manager, who would fetch him gambling chips while he stayed at the table.
About a decade ago, after a loss at the casino, a “very anxious” Mr Lee was told he could use one of those cards to pay back his debt.
The NSW Independent Liquor & Gaming Authority is investigating whether The Star Sydney is fit to keep its casino licence following media reports last year accusing the casino’s owner of enabling suspected money laundering, organised crime, fraud and foreign interference.
The inquiry has already heard from the former group treasurer of the company Sarah Scopel, who agreed that NAB was supplied documents by The Star that suggested the money was not used for gambling.
She conceded her responses to queries from NAB were dishonest and unethical.
NAB executive Tanya Arthur returned for further evidence on Monday and acknowledged she never received a written confirmation from The Star that CUP cards were not being used for gambling.
She took her client at their word over the phone and said she “had no reason to suspect otherwise” at the time, but now believes she was intentionally misled, despite being told by The Star it was not able to provide detailed breakdowns of spending to show how the money was spent.
Ms Arthur “strenuously disagreed” that she accepted what she was told and put it in writing herself to other bank officers to alleviate CUP’s concerns.
Star Entertainment says it has an unwavering focus on preventing criminal activity at its casinos, which also include The Star Gold Coast and Treasury Brisbane.
The hearing continues.
AAP
