Former Crown Resorts executive tried to revive illegal chip payment method

A former Crown executive close to James Packer pushed to revive an illegal payment process years after it was axed.

Mr Ratnam was a former head of Crown’s high-rolling VIP business and has described himself as James Packer’s butler, host and personal assistant. Picture: NCA NewsWire / David Crosling

Former Crown Resorts executive and James Packer’s right-hand man Ishan Ratnam allegedly pushed to reinstate an illegal payment method for gaming chips popular with high rolling Chinese gamblers after it was axed, a royal commission has heard.

On Friday the Victorian Royal Commission into the company quizzed Crown Melbourne’s general manager for legal Jan Williamson on her knowledge of the method, which has come to be referred to as the “China Union Pay Process.”

The process, active between 2012 and 2016, involved casino patrons using a terminal at the Crown Towers hotel reception in Melbourne to pay for gaming chips collected at the main casino cage, with the transaction charged to a real or fake hotel invoice under a miscellaneous category.

At least $160m was transacted through the process, which commissioner Raymond Finkelstein deemed a “fraudulent scam.”

It was discontinued in November 2016, following the arrest of 19 Crown staff in China for illegally promoting gambling and growing Chinese scrutiny on citizens circumventing capital controls.

Last month Crown Resorts conceded the practice was illegal as Victorian laws prevent debit or credit cards being used to purchase gaming chips, but evidence before the commission shows key players at the company recognised this issue as far back as 2012.

Ms Williamson said she first became aware of the specifics of the process earlier this year when an employee raised it as a potential money laundering method at a staff training day, despite her being aware of the process generally as far back in 2013.

Although she claimed not to know the details of the process, Ms Williamson confirmed that in 2018 or 2019 former Chief Legal Officer Joshua Preston told her to knock back any attempts by anyone else at the business who approached the legal department about reinstating it.

“It was Mr Preston who indicated that ‘if they came to you, you were to maintain the stance against them,’” Ms Williamson said.

“Did anyone approach you personally to try and persuade you to bring back the China Union Pay process or advocate for that to Mr Preston?” asked counsel assisting Penny Neskovcin.

“From recollection, it was possibly Mr Ratnam,” Ms Williamson replied.

“I said: ‘No. I’ve been instructed no, you take it up with Josh.’”

Mr Ratnam was a former head of Crown’s high-rolling VIP business and has described himself as James Packer’s butler, host and personal assistant.

The commission heard last week that Mr Ratnam had former Fairfax journalist Mark Hawthorne tracked by private detectives around 6 years ago following a series of articles investigating Mr Ratnam’s business activities.

He left the company in the wake of the NSW Bergin Inquiry’s decision to suspend Crown’s casino licence earlier this year.

The inquiry, which also resulted in Mr Packer relinquishing his voting power over the company, heard that the VIP business operated outside of the confines of Crown’s risk management structure with a “profit first” mindset.

The Victorian commission is set to report on whether Crown is suitable to operate its Melbourne casino in October.

In its last slate of public hearings next week it will hear from Crown executive chairman Helen Coonan and other senior executives.