Millions in fines hinge on long wait for verdict as ASIC wraps up its laundering case against Star

ASIC has completed its case against former executives and directors of Star Entertainment, but it may be up to six months before a court judgment is made.

ASIC has wrapped up its case against Star Entertainment.

ASIC has wrapped up its marathon case against former executives and directors of Star Enter­tainment, with the presiding judge indicating that it may be up to six months before he delivers his judgment in the “complex litigation” over lax money-laundering controls.

Federal Court judge Michael Lee, who is also presiding over the long-running unlawful outsourcing case against Qantas, said he was “acutely conscious of the stress litigation like this puts on individuals” and the need for a resolution.

Federal Court judge Michael Lee. Picture: Britta Campion

ASIC is seeking millions of dollars in pecuniary penalties against former Star chief executive Matt Bekier, company secretary Paula Martin, former chairs John O’Neill and Benjamin Heap, as well as former high-profile directors Sally-Anne Pitkin, Kathleen Lahey, Gerard Bradley, Wallace Sheppard and Zlatko Todorcevski for alleged breach of their duties to enforce money-laundering controls at the casino giant.

Justice Lee, who is also due to take a period of leave later this year, said if he believed he was going to be delayed significantly after September in delivering his judgment, he may pronounce ­orders in the case followed by the reasons at a later date.

“People would then know what the position is,” Justice Lee said. “This is very complex litigation and I’m extremely grateful for the highly professional way it’s been conducted by all counsel and also by the solicitors in presenting what is a very unwieldy mass of information in some sort of comprehensible way.”

Former Star chief executive Matt Bekier. Picture: Gaye Gerard

ASIC is seeking penalties against the nine defendants, including fines of up to $1.05m for each breach, along with declarations and disqualification orders.

The breaches relate to alleged failures in risk management by senior executives and directors in relation to the activities of junket operators who brought high-roller Asian gamblers to its casinos, in particular Star Sydney.

Before the start of the trial in February, ASIC settled its case against former Star chief casino officer Greg Hawkins and former chief financial officer Harry Theodore, agreeing for them to be fined $180,000 and $60,000 respectively.

Wrapping up the defence case this week, Robert Dick SC, counsel for Star’s non-executive directors, said ASIC was guilty of overreach in accusing the former board of neglecting its duties in ­relation to money-laundering controls.

The court was told the board was entitled to take comfort that the money-laundering risks were being handled appropriately by management. This included the activities of junket operator Suncity and its founder, Alvin Chai, at the Salon 95 gaming room at Star Sydney.

Mr Dick told the court it was overreach by ASIC to suggest the board should suspend or cancel its dealings with Suncity and Mr Chau pending further investigation, suggesting there was more than one right answer to what the board ought to have done in the circumstances.

Star’s former chief lawyer, Paula Martin, told the court earlier that large amounts of cash leaving Salon 95 in bags was “suspicious” but did not necessarily indicate money laundering.

Salon 95 was operated by junket operator Suncity, which at the time was facing allegations of links to Asian crime gangs. Star’s board in 2018 increased Suncity and Chau’s credit ­facility from $50m to $80m.

Originally published as Millions in fines hinge on long wait for verdict as ASIC wraps up its laundering case against Star