Key facts
- Former Star Entertainment CEO Matthias Bekier banned from managing corporations for six years.
- Bekier fined A$700,000 ($495,000) for failing to address money laundering and criminal activity risks.
- Former Chief Legal & Risk Officer Paula Martin banned for seven years and fined A$400,000.
- Court found both executives breached duties owed to Star under section 180 of the Corporations Act 2001.
- Justice Michael Lee stated Bekier and Martin lacked sufficient understanding of the seriousness of their breaches.
Australia's Federal Court has banned former Star Entertainment CEO Matthias Bekier from managing corporations for six years and fined him A$700,000 ($495,000) over breaches related to handling risks associated with money laundering and criminal activity. The court found Bekier, along with former Chief Legal & Risk Officer Paula Martin, contravened their duties owed to Star under section 180 of the Corporations Act 2001.
Justice Michael Lee imposed a six-year ban and the A$700,000 fine on Bekier, while Martin received a seven-year ban and a A$400,000 fine. The court also ordered the two executives to jointly fund 45% of the Australian Securities and Investments Commission's (ASIC) legal costs.
The case centered around Star's dealings with its largest junket operator, Suncity, and the alleged failure by Bekier and Martin to adequately address money laundering risks, even after becoming aware of reports of criminal links. ASIC alleged Martin also permitted misleading statements to be provided to NAB regarding the use of China Union Pay cards for gambling, which was prohibited.
Justice Lee noted a lack of demonstrated insight into the seriousness of their contraventions by both Bekier and Martin, stating it was one thing to regret the consequences of being investigated but another to appreciate why the conduct involved serious failures. The judge also commented that the penalties would have been more severe had ASIC not reached a lenient agreement with other executives, Greg Hawkins and Harry Theodore, who engaged in comparable misconduct.
The judgment also included a critical assessment of Star's board, with Justice Lee observing that while he had exonerated them of wrongdoing in an earlier judgment, the directors failed to pursue lines of inquiry with the rigor expected for a corporation operating in a high-risk environment.