Star Entertainment CFO Harry Theodore set to depart casino giant within weeks

The fallout from shock allegations at the NSW probe into Star Entertainment continues with CFO Harry Theodore expected to resign within weeks.

Star Entertainment chairman John O'Neill will be paid $125,000 a month for assuming the company’s management responsibilities. Picture: Supplied

Star Entertainment will remove other top figures after the departure of chief executive Matt Bek­ier, with the casino giant’s chief financial officer Harry Theodore expected to resign within weeks.

Mr Theodore has been CFO since 2019, but has held other senior positions at the company since arriving almost 11 years ago from the Royal Bank of Scotland.

Sources with direct knowledge of discussions said Mr Theodore’s resignation plans had been communicated internally. A search is already under way for his replacement. A Star spokesman declined to comment.

Along with three other senior figures at Star, Mr Theodore deceived staff at National Australia Bank about large amounts of money from major gamblers that was being disguised as hotel and restaurant expenses.

The resignation would come amid significant fallout from the NSW inquiry run by Adam Bell SC, with Star chairman John O’Neill on Friday announcing he would assume management responsibilities following Mr Bekier’s exit.

The Weekend Australian has also confirmed that the inquiry will be extended by at least two weeks at the request of Mr Bell.

Mr O’Neill’s appointment as executive chairman – drawing an annual salary of $2m in total – is similar to the elevation of former Crown Resorts chairman Helen Coonan to manage the Star’s rival after the resignation of Ken Barton, following the Bergin review.

Star’s move underscores how quickly the crisis engulfing the company is unfolding. On Monday, it said while Mr Bekier would stand down immediately from the company’s board, he would keep his management position until a replacement was found to “transition his executive responsibilities in an orderly manner”.

In an ASX statement, the gaming company said Mr Bekier will now be “available in the short term to provide handover assistance as the board requests”.

“While the board considers it critical that the company has stability in this transitional period to a new managing director and CEO, it acknowledges the need for accelerated board change,” Star said. “As The Star continues to focus on its day to day business it is also committed to its more than 8000 team members after two years of Covid-related shutdowns and restrictions.

“A review of The Star Sydney being undertaken by Mr Adam Bell SC is ongoing. The Star continues to co-operate fully.”

Revelations made during the royal commission-style inquiry have already sparked a shareholder class action brought by Slater & Gordon in the Victorian Supreme Court. Star said it “intends to defend the proceedings”.

“The allegations reference the ongoing ILGA inquiry and previous media reporting.”

The swiftness of Mr Bekier’s resignation surprised board members over the weekend.

At Crown, Mr Barton waited until after the end of the Bergin inquiry – and even then resisted calls to step aside.

“While the review remains ongoing, Mr Bekier informed the board that as managing director and CEO he is accountable for the effectiveness and adequacy of the company’s processes, policies, people and culture,” Star said earlier this week.

“Mr Bekier said the right thing to do was for him to take responsibility. Mr Bekier will step down from the board immediately, and will work with the board to transition his executive responsibilities in an orderly manner.

The inquiry heard that Mr Bekier had slammed an independent KPMG report into Star – which exposed “fundamental deficiencies” in the group’s anti-money laundering program – at a hostile meeting in May 2018.

The inquiry also heard that when he was later asked why Chinese junket operator Suncity was still allowed at Star – despite repeatedly flouting money-laundering controls and having known links to organised crime – Mr Bekier replied: “Why not?” The inquiry also viewed CCTV footage of bundles of cash being taken from backpacks and exchanged for gambling chips in Suncity’s gaming salon at the Pyrmont casino – effectively running a casino within a casino, breaching state laws.

The inquiry also heard that a general manager at Star believed he did not have to follow the “spirit of the law” when developing a work­around to allow funds from cashed-up Chinese gamblers to flow into its casinos, following a Beijing crackdown.

Another senior manager only told the NSW gaming regulator in an “informal discussion” that a VIP gambler was using his China Union Pay card at Star Sydney, despite using it for transactions totalling more than $20m, breaching an international ban.

The new information has come to light during the Bell inquiry into Star’s suitability to run its Sydney casino, launched by the NSW Independent Liquor and Gaming Authority.

Star’s has appointed Spencer Stuart to find a new CEO.