A Federal Court in Australia has banned former Star Entertainment CEO Matthias Bekier from managing companies for six years and imposed a A$700,000 fine over failures to address money laundering risks at the casino operator, according to Reuters.
The ruling follows a court finding earlier this year that Bekier and former chief legal and risk officer Paula Martin breached their duties by failing to adequately respond to serious compliance and governance concerns at Star Entertainment.
Compliance failures
In March, the Federal Court found that Bekier did not properly act on a KPMG report that highlighted weaknesses in Star's anti-money laundering controls and criminal activity detection processes. The court also found he failed to sufficiently manage risks linked to junket operator Suncity.
Justice Michael Lee said the former executives had not shown a sufficient understanding of the seriousness of their conduct.
"It is one thing to regret the consequences of having been investigated and sued; it is another to demonstrate an appreciation of why the conduct found by the Court involved serious failures in the discharge of duties owed by senior officers of a casino operator," Lee said.
Martin was fined A$400,000 and banned from managing companies for seven years. The court found she failed to properly advise Star's board about risks associated with Suncity.
The junket operator came under intense scrutiny after its chief executive was arrested in late 2021 over alleged links to cross-border gambling and money laundering activities.
Fallout continues
Bekier resigned as Star Entertainment's chief executive in 2022 as investigations intensified into potential breaches of anti-money laundering and counter-terrorism financing laws at the group's casinos. Martin also stepped down from her role the same year.
The latest judgment adds to the ongoing challenges facing Star Entertainment, which has been under regulatory and legal pressure over governance failures, compliance shortcomings and anti-money laundering controls.
Star Entertainment did not immediately respond to a request for comment.