Former Star CEO fined US$494,200 and banned six years in Macau junket case
The court found that Matt Bekier failed to adequately escalate or act on warning signs associated with money-laundering risk.
Australia.- Australia’s Federal Court has imposed a AU$700,000 (US$494,200) penalty and a six-year management ban on former group managing director and chief executive of The Star Entertainment Group, Matt Bekier, following findings of serious governance breaches linked to money-laundering risks at the casino operator.
The ruling stems from a long-running civil penalty case brought by the Australian Securities and Investments Commission (ASIC), which alleged that senior executives failed to properly manage exposure to criminal risk indicators connected to high-volume overseas betting flows.
At the centre of the case was Star’s dealings with Macau-based junket operator Suncity Group, which generated significant turnover through the casino. Court evidence showed Suncity-related transactions rose from about AU$2.1bn (US$1.47bn) in 2017 to AU$4bn (US$2.79bn) in 2018 and AU$5.9bn (US$4.12bn) in 2019, despite escalating concerns over possible criminal associations linked to its network.
The court also examined compliance issues involving National Australia Bank, including allegations that information provided about China UnionPay card usage at casino ATMs was inaccurate, raising further questions about internal controls and reporting accuracy.
Justice Michael Lee found that the former executive failed to adequately escalate or act on warning signs associated with money-laundering risk. He said the evidence pointed to systemic governance weaknesses and noted the absence of meaningful insight into the seriousness of the breaches, with too much emphasis placed on personal consequences rather than accountability for the conduct itself.
Bekier has, however, confirmed plans to appeal the decision.
In a separate ruling, former chief legal and risk officer Paula Martin was fined AU$400,000 (US$279,800) and banned from managing companies for seven years over related contraventions.
The Australian Securities and Investments Commission initially brought proceedings against 11 former directors and executives of Star. Several defendants were cleared, while others settled before judgment was delivered.
