The Federal Court of Australia has levied fines against Matt Bekier, the former CEO of Star Entertainment, and Paula Martin, the former General Counsel and Chief Legal and Risk Officer. Bekier faces a fine of A$700,000 and has been disqualified from management roles for six years. Martin has been fined A$400,000 and will be disqualified for seven years. Both are also required to cover 45 percent of the legal costs incurred by the Australian Securities and Investments Commission (ASIC).
This action follows ASIC’s initiation of proceedings in December 2022 against 11 current and former directors and executives of Star, prompted by increasing public concerns over governance failures linked to the company’s casino operations and its dealings with junket operators. The Court highlighted that Bekier did not adequately address concerns raised in a KPMG review related to Star’s anti-money laundering measures and failed to manage risks associated with Suncity, an Asian junket operator that operated through the Star Sydney VIP salon, Salon 95. Similarly, Martin did not properly inform the board about the risks posed by Suncity and misled the National Australia Bank regarding the usage of China Union Pay cards by customers at Star, with estimates indicating that over AUD 900 million was processed on those cards from 2013 to 2019.
As a consequence of these findings, the Star Sydney casino’s current operating license has been suspended. An external manager, Nick Weeks, will oversee the casino's operations until at least September 30, 2026.
