Former Star executives challenge court rulings over AML failures
Paula Martin and Mathias Bekier seek to overturn aspects of the Federal Court ruling.
Australia.- Two former senior executives of Star Entertainment Group have lodged appeals against Federal Court rulings that held them responsible for governance failures linked to money laundering risks involving former junket partner Suncity and prohibited China UnionPay (CUP) transactions.
Former chief legal officer and company secretary Paula Martin seeks to overturn findings that she breached the Corporations Act by failing to escalate money laundering risks to Star’s board. In June, the Federal Court barred her from managing corporations for seven years and imposed an AU$400,000 (US$283,000) civil penalty.
Martin’s appeal argues the court was wrong to conclude that her responsibilities required her to raise the Suncity and CUP issues directly with the board. She is asking the Federal Court to dismiss the proceedings or, alternatively, set aside parts of the judgment and reconsider the penalty and the length of her disqualification. She has also requested that the Australian Securities and Investments Commission (ASIC) pay the legal costs of the original proceedings and the appeal.
Justice Lee previously ruled that Martin’s duties as group general counsel and company secretary could not be treated separately because she reported directly to the board, attended most board meetings and was responsible for ensuring the company’s operations complied with legal and regulatory requirements. The court found that a reasonable officer in her position should have ensured directors were aware of the money laundering concerns and the misuse of CUP bank cards.
Meanwhile, former managing director and chief executive Mathias Bekier, who received a six-year management ban and an AU$700,000 (US$495,000) civil penalty, is challenging 11 aspects of the ruling, including findings that he failed to take adequate steps to address money laundering risks and should have requested all correspondence between Star and National Australia Bank concerning CUP transactions after the bank issued a warning in 2020.
Bekier has also asked the court to review his penalty if the liability findings are upheld, arguing the sanctions imposed did not properly reflect those handed to other former Star executives.
