Star ex-CEO: Salon 95, suspicious activity not my problem

Former Star boss Matt Bekier has told a court he relied on his regulatory team to monitor suspicious activity, including reports of ‘bags of money’ appearing at a private gaming salon.

Former Star boss Matt Bekier was asked about ‘bags of money’ appearing at the casino on his watch.

Former Star Entertainment chief executive Matt Bekier said he relied on his regulatory team to monitor suspicious activity, including reports of “bags of money” appearing at a private gaming salon run by junket operator Suncity.

Mr Bekier told the Federal Court on Friday that suspected illegal activity at Star’s casinos, including the Salon 95 gaming room in Sydney, should have been identified by the company’s surveillance team.

Earlier the court heard Star executives had responded with “glacial inertia” to reports Suncity was flouting strict cash-handling regulations at Salon 95. In one incident, a non-participant in the Suncity junket was able to collect $45,000 from the service desk.

On other occasions, CCTV footage showed large amounts of cash being dropped off at the desk in a red suitcase, brown paper bags and a blue Esky.

ASIC is suing Mr Bekier and eight other former executives and directors of Star including chief counsel Paula Martin and chair John O’Neill for breach of duties in relation to anti-money laundering controls.

Mr Bekier said that problems arising at Salon 95, including suspected money laundering, were “the problem” of casino chief Greg Hawkins. “Salon 95 was Mr Hawkins’ problem and he had to be on top of it and keep me informed,” Mr Bekier told the court.

Mr Bekier said he remembered questions from the board about a 60 Minutes program in 2019 that raised the issue of “bags of money” appearing at rival casino operator Crown.

He was asked whether he remembered Ms Martin telling the board that Star had experienced similar scenarios, including in the retail precinct, private gaming rooms and Salon 95.

“I’m not sure that I remember that precise wording, but bags of money appearing in a casino was something that would have been known or would have been made known to the board,” said Mr Bekier.

“My recollection of that conversation was much more about the differences that we had to Crown in dealing with these bags.”

Former Star Entertainment chief executive Matt Bekier.

Mr Bekier said he did not remember being told by Ms Martin that the compliance team’s view was that there were no issues in relation to breaches at Salon 95 because they had not been able to establish that any prohibited chip-for-cash transactions had occurred.

Mr Bekier failed in an application to Justice Michael Lee to prevent ASIC using evidence he gave to the first Bell inquiry in 2022 about a report produced by the Hong Kong Jockey Club which outlined crime links involving Suncity.

The first Bell inquiry found that Star was unfit to hold a casino licence, suspended it indefinitely and allowed it to operate only after a government representative was appointed to oversee a major remediation program. Mr Bekier resigned the same year.

Mr Bekier told the court this week that he had attempted to “chase down a copy of the report” in 2019 and asked then-Star group manager of due diligence and intelligence Angus Buchanan, who produced the report while earlier employed by the Jockey Club, for a copy.

Mr Bekier said Mr Buchanan told him it was the property of the Hong Kong Jockey Club and not his to give.

Dr Ruth Higgins, chief counsel for ASIC, said the truth was that Mr Bekier did not speak to Mr Buchanan until 2022, which accorded with the evidence he gave to the Bell inquiry. Mr Bekier acknowledged that this is “the statement and the position I took to Mr Bell” but he had since reflected on the timing of his conversation.

“To the best of my recollection (2019) is when I tried to chase down copies of that report and in the context, when it was topical,” Mr Bekier told the court. “By 2022, that report wasn’t that topical anymore.”

Justice Lee said that while there was an issue of unfairness in admitting Mr Bekier’s evidence from the Bell inquiry, it did “have some real potential importance.”

“It not only goes to the question of when Mr Bekier had a communication with Mr Buchanan but also it seems to me at least something which no doubt will be relied upon by ASIC in its final submissions as reflecting adversely upon the credit of Mr Bekier,” Justice Lee said.

“I am not seeking by this ruling to be forecasting whether or not I would think a submission on those lines is worthy of acceptance, but I must proceed on the basis that is likely to be the approach taken by ASIC.”

The hearing resumes on Monday when Ms Martin is expected to give evidence.

Originally published as Star ex-CEO: Salon 95, suspicious activity not my problem