Be ready and don’t be late, judge tells Star ex-directors’ trial

Former Star Entertainment directors being sued over claims they failed to halt money laundering risks and criminal links are on track to be tried by ASIC in February.

ASIC deputy chair Sarah Court. Picture: Josie Hayden

Former Star Entertainment directors being sued over claims they failed to halt money laundering risks and criminal links creeping into its operation are on track to be tried by the corporate cop in a blockbuster civil case beginning in February.

During a brief hearing in the case on Wednesday, first launched by the Australian Securities Securities and Investments Commission in 2022, Federal Court judge Michael Lee urged ASIC and the parties to ensure the trial starts on time come “hell or high water”.

It is scheduled to run for about six weeks, from February 10, and concerns claims about Suncity arranging junkets for high-roller overseas customers.

ASIC deputy chair Sarah Court has previously said the watchdog claimed “Star’s board and executives failed to give sufficient focus to the risk of money laundering and criminal associations, which are inherent in the operation of a large casino with an international customer base”.

The case involves claims against board members serving between 2017 and 2019 – former chair John O’Neill, ex-CEO Matt Bekier and directors Kathleen Lahey, Richard Sheppard, Gerard Bradley, Sally Pitkin, Benjamin Heap and Zlatko Todorcevski.

John O'Neill.

Richard Sheppard.

All have lodged defences in the case.

On Wednesday, ASIC applied for a suppression order to cover personal details in suspicious matter reports expected to be tendered in the long-running case.

For ASIC, barrister James Arnott, SC, said his client had no intention of asking Justice Lee to close the court but was seeking that “protected material” remain confidential.

It was highlighted though, that a “great deal of material” is already in the public domain due to Adam Bell, SC’s inquiry into Star, which in 2022 recommended the casino’s licence be suspended indefinitely.

It was also hit with a $100m fine and a manager was appointed by the NSW Independent ­Casino Commission.

Star Entertainment Group’s former CEO, Matt Bekier. Picture: Richard Walker

Justice Lee said part of ASIC’s application “raised profound questions” and he was hesitant to grant orders requested without a contradictor: “This is not simply … what material is relevant and admissible. This is an action of the member of the executive … modifying the law only in circumstances where judicial power is being exercised in a particular way.”

Later, Justice Lee said: “I do think it’s always concerning to me at least in relation to something as novel as this when there is no one who is a contradictor.”

ASIC has alleged board members approved the expansion of Star’s relationship with certain individuals with reported criminal links, rather than addressing money laundering risk by inquiring into whether Star should be dealing with them. “ASIC also alleges that board members, when provided with information about money laundering risks affecting Star, did not take steps to make further inquiries … and that this was a breach of their director duty obligations,” a statement read.

Suncity was Star’s largest junket, with Star’s turnover from Suncity being about $2.1bn, $4bn and $5.9bn for the 2017, 2018 and 2019 financial years respectively.