Ex-Star casino executives fined over Chinese money laundering scandal

Former Star CEO Matthias Bekier was accused of failing to address the risk of money laundering. (AAP: Dan Peled)

Two former executives of The Star Entertainment Group Ltd (Star) have been handed penalties for breaching the Corporations Act.

Today, Justice Michael Lee found three contraventions in respect to Matthias Bekier and three contraventions in respect to Paula Martin.

Justice Lee made a disqualification order of six years in relation to Mr Bekier, and seven years in relation to Ms Martin.

In relation to Mr Bekier, the court imposed a fine of $700,000, and in respect of Ms Martin, $400,000.

Earlier this year the Federal Court found that the two former senior executives of The Star Entertainment Group Ltd (Star) breached their duties in relation to their handling of the risks associated with money laundering and criminal activity at one of Australia's major casinos.

The court found that Star's former Chief Executive Officer and Managing Director, Mr Bekier, and former Chief Legal & Risk Officer, Ms Martin, contravened the law by breaching their duties owed to Star under section 180 of the Corporations Act 2001.

The corporate watchdog, ASIC, brought the case against Star.

In a statement after the judgment was handed down in March, ASIC's chair Joe Longo said ASIC had pursued the case because it raised fundamental questions about "trust, governance and accountability at one of Australia's largest casino operators."

Star casino's former top boss and its legal counsel both breached their director's duties and "failed" to heed warnings about money laundering by Chinese criminal syndicates, the Federal Court in Sydney has found.

Much of the case centred around Star’s largest junket operator Suncity. Star's turnover from Suncity was approximately $2.1 billion, $4 billion and $5.9 billion for the 2017, 2018 and 2019 financial years respectively.

ASIC's case alleged, amongst other things, that Mr Bekier and Ms Martin did not adequately address the money laundering risks that arose from Star's dealing with Asian gambling junket Suncity and its funder, as well as continuing to deal with them despite becoming aware of reports of criminal links.

ASIC alleged Ms Martin permitted misleading statements to be provided by Star to NAB regarding the use of debit cards issued by China Union Pay International Ltd (CUP) at NAB ATMs located on Star's premises.

Those statements disguised the fact that Star was permitting CUP cards to be used for gambling, which was prohibited by CUP.

Justice Lee said: "The object is the protection of the public interest by imp