{"id":28693,"date":"2022-04-05T06:55:01","date_gmt":"2022-04-05T09:55:01","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=28693"},"modified":"2026-04-23T09:54:55","modified_gmt":"2026-04-23T12:54:55","slug":"star-continued-to-work-with-suncity-despite-concerns-inquiry-hears","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/star-continued-to-work-with-suncity-despite-concerns-inquiry-hears","title":{"rendered":"Star continued to work with Suncity despite concerns, inquiry hears"},"content":{"rendered":"\n<p>Skye Arnott, Star\u2019s chief financial crime officer, has admitted the company continued to work closely with Suncity despite a 2019 report on illicit activities.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>Australia.- On a new day of public hearings into the Star Entertainment Group in New South Wales, the ILGA inquiry has heard\u00a0<strong>Skye Arnott, Star\u2019s chief financial crime officer<\/strong>, speak about Star Entertainment\u2019s close\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/focusgn.com\/asia-pacific\/suncity-continued-cash-operations-at-star-despite-ban-inquiry-hears\" target=\"_blank\">dealings with Suncity Group<\/a>.<\/p>\n\n\n\n<p>Arnott told the inquiry that\u00a0<strong>the company continued to work closely with Suncity despite a 2019 report\u00a0<\/strong>on illegal activities.\u00a0The report, originally released by the Hong Kong Jockey Club, claimed that\u00a0<strong>Suncity laundered US$2m<\/strong>\u00a0in cash every day between 2013 and 2015.<\/p>\n\n\n\n<p>Arnott claimed her decision to continue relations with SunCity was based on her concerns about the Jockey Club report. But it wasn&#8217;t until 2020 that Star first turned its attention to an arrangement at Salon 95.<\/p>\n\n\n\n<p>A week ago, the inquiry hear that in Salon 95,\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/focusgn.com\/asia-pacific\/star-compliance-manager-misled-nsw-gambling-regulator-about-junkets\" target=\"_blank\">junkets handed out non-transferable chips to players<\/a>, and if they won, exchanged those chips for premium chips and then back to non-transferable chips. Each broker received a set of non-transferable chips, offered in Australian or Hong Kong dollars. The room was not mentioned in The Star\u2019s planning submissions.<\/p>\n\n\n\n<p>Arnott admitted that Star Entertainment did not take prompt action against apparent fraud.\u00a0She was also questioned over CCTV footage from 2018 that showed<strong>\u00a0Suncity staff putting piles of cash in a brown paper bag\u00a0<\/strong>at the venue.<\/p>\n\n\n\n<p>The Star Sydney&#8217;s Suncity operations ceased in November 2021, following the\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/focusgn.com\/asia-pacific\/suncity-group-chairman-arrested-in-macau\" target=\"_blank\">arrest of Suncity&#8217;s founder, Alvin Chau Cheok Wa<\/a>, over cross-border gambling and money laundering accusations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Star Entertainment faces class action from shareholders<\/h2>\n\n\n\n<p>Investors in the Star Entertainment Group have filed&nbsp;<strong>a class action lawsuit&nbsp;<\/strong>amid the heavy public scrutiny of the group\u2019s Sydney casino operations. Investors are seeking compensation for alleged misleading or deceptive representations made by Star regarding its compliance with regulatory obligations.<\/p>\n\n\n\n<p>The lawsuit alleges that Star led investors to believe the group was a model casino operator when in fact it failed to curb corruption, money laundering and bribery.&nbsp;<strong>Star\u2019s stock price fell by more than 25 per cent&nbsp;<\/strong>after media reports of money laundering and other misconduct in 2021, wiping more than $1bn off the company\u2019s market value.<\/p>\n\n\n\n<p>Lead plaintiff&nbsp;<strong>David Lynch&nbsp;<\/strong>said: \u201cAs an investor, I expect that licensed operators that are publicly listed will operate following the law and that there are appropriate checks and balances to ensure they do so. I am dismayed by the apparent scale of Star\u2019s misconduct that is now being revealed in the public hearings.\u201d<\/p>\n\n\n\n<p>Senior associate<strong>&nbsp;Ben Zocco<\/strong>&nbsp;told ABC: \u201cWhen investors purchase shares in a listed company, they are entitled to assume that all of the material information relevant to its financial position had been disclosed to the market.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Skye Arnott, Star\u2019s chief financial crime officer, has admitted the company continued to work closely with Suncity despite a 2019 report on illicit activities.<\/p>\n","protected":false},"author":176,"featured_media":26456,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Star Entertainment Group's Chief Financial Crime Officer admitted the company continued dealings with Suncity Group despite a 2019 report on illicit activities, including alleged money laundering. This revelation, alongside details of unapproved junket operations and delayed action on fraud, has led to a class-action lawsuit from investors seeking compensation for alleged misleading representations regarding regulatory compliance.","focusai_entities":"Skye Arnott, Star Entertainment Group, Suncity Group, Hong Kong Jockey Club, ILGA, Alvin Chau Cheok Wa, David Lynch, Ben Zocco, ABC","focusai_location":"Australia, New South Wales, Hong Kong, Sydney","focusai_target_profile":"ceo_executive (1.0), regulator (1.0), compliance_legal (1.0), operator_casino (0.9), payments_fraud_aml (1.0), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Governance Framework Review","query":"What specific enhancements to Star Entertainment Group's corporate governance and internal control frameworks are being implemented to prevent future AML and regulatory compliance failures?"},{"label":"Market Impact Assessment","query":"Beyond the immediate financial penalties and class-action settlement, what is the projected long-term impact of these regulatory findings on Star Entertainment Group's market share, brand equity, and licensing viability in key jurisdictions?"}],"footnotes":""},"categories":[16336,156,158],"tags":[229,23911,24103],"class_list":["post-28693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-australasia-news","category-regulation-news","category-slider-home","tag-gambling","tag-gambling-regulation","tag-star-entertainment-group"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/28693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=28693"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/28693\/revisions"}],"predecessor-version":[{"id":28719,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/28693\/revisions\/28719"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/26456"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=28693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=28693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=28693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}