Australian Court Fines Former Star Entertainment CEO $495,000, Bans for Six Years 

Australia’s court has banned ex-Star Entertainment Chief Executive Matthias Bekier from managing corporations for six years and fined him A$700,000 ($469,926) for failures to tackle money laundering hazards at the casino operator.

Months earlier, the Federal Court found Bekier and former chief legal and risk officer Paula Martin had engaged in misconduct for not properly addressing risks within the company.

Serious Failures in Handling Business Risks Found By Court

The Federal Court ruled in March that Bekier had failed to respond adequately to a KPMG report that highlighted flaws in Star's controls against money laundering and criminal activity. He also had inadequate risk management of junket operator Suncity, the court found.

The case had been adjourned for a day and a half because Federal Court Justice Michael Lee said Bekier and Martin's understanding of the seriousness of their actions was insufficient. He cautioned that the "political ramifications" of an investigation are different to its findings and why certain conduct amounted to serious failures by senior executives at a casino operator.

Former Executives Fined and Banned

In addition to Bekier's $700,000 fine and disqualification from managing companies for six years, Martin was fined A$400,000 and banned for seven years. The court considered that she had not informed the board of Star about risks associated with Suncity, whose chief executive was arrested at the end of 2021 for his links to illicit cross-border gambling and money laundering.

In 2022, Bekier stepped down as Star chief executive amid probes into potential breaches of anti-money laundering and counter-terrorism laws at the company's casinos. Martin also resigned that year.

Source: Reuters

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