Star Entertainment’s ex-CFO Harry Theodore to give evidence against the gaming giant and other execs
Former Star Entertainment CFO Harry Theodore will give crucial evidence about how the gaming giant used China Union Pay cards, in ASIC’s looming legal fight against 10 other executives.
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Star Entertainment’s former chief financial officer has turned witness for the corporate regulator in its looming high-profile fight against 10 other directors and executives at the embattled gaming giant, sources said.
The Australian has been told Star’s former CFO Harry Theodore has agreed to provide a statement of agreed facts in support of the Australian Securities and Investments Commission in its looming court fight with the gaming giant’s leadership, slated to start on February 10.
While ASIC refused to comment, sources said Mr Theodore had flipped in the lead up to the court showdown, with the former CFO among the 11 Star directors and executives hit with civil penalty proceedings in December 2022.
Mr Theodore is understood to have agreed to a statement detailing the facts around Star’s disclosures to its bank NAB on the use of China Union Pay cards in the gaming giant.
The defection of Mr Theodore peels off a key party in the Star case, with sources suggesting his evidence could be critical to ASIC’s case against the gaming giant’s former chief executive Matt Bekier, general counsel Paula Martin, and former chief casino officer Greg Hawkins.
The three executives are alleged to have breached their duties by failing to address money laundering risks at Star through its links with Macau-based gambling junket operators Suncity.
They are also alleged to have misled Star’s bank NAB over the use of China Union Pay cards, which were allegedly used for gambling.
A key plank of ASIC’s case centres on the use of the cards and disclosures given by Star’s leadership.
NAB, a major lender to Star, also provided the payments terminals, which could accept China Union Pay cards, in the hotel adjacent to the gaming giant’s Sydney casino.
China Union Pay allegedly told Star, via NAB, that “transactions relating to the purchase of gaming chips were not permitted, and NAB conveyed that to Star in 2016 and 2017”.
“In its responses, Star did not indicate that a large proportion of the funds was ultimately used for gambling,” ASIC claims in its court filings.
ASIC’s court documents identify a November 7 2019, note sent by Star to NAB which had been reviewed by Ms Martin, the general counsel, and Mr Theodore, the CFO, “which conveyed that the funds were used for non-gambling expenses such as hotel accommodation, private jet travel, tourism services, food and wine and jewellery, and that none of the funds obtained were used (whether directly or ultimately) to fund the purchase of gaming chips”.
Sources said Mr Theodore has agreed to work with ASIC on its case in a bid to close the chapter surrounding Star.
However, Mr Theodore could not be reached by The Australian.
Justice Michael Lee must approve ASIC’s attempt to use Mr Theodore’s evidence in its hearing.
A case management and return of subpoena hearing on Monday morning, ahead of the trial start date next week, was moved to Wednesday in a late change.
This comes after a subpoena filing by Star’s former company secretary and general counsel Paula Martin in early January.
ASIC’s case against the 11 Star directors is among the highest profile court actions from the corporate regulator in recent years, marking an attempt to hold the gaming giant’s board and executives accountable for the alleged failures under their watch.
The regulator is pursuing former Star chairs John O’Neill and Ben Heap, and non-executive directors Kathleen Lahey, Richard Sheppard, Gerard Bradley, Sally Pitkin and Zlatko Todorcevski.
Star, which is facing a financial reckoning, has indemnified the directors.
The former Star directors claim they were not aware of the gaming giant’s issues.
Originally published as Star Entertainment’s ex-CFO Harry Theodore to give evidence against the gaming giant and other execs
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