Star Entertainment

Star’s former boss and chief legal officer have argued that a judge erred in finding they breached their directors’ duties by allegedly failing to inform the board of unacceptable money laundering risks in its Sydney casino. 

The former CEO and chief legal officer of Star Entertainment are challenging a judge's orders that they pay a combined $1.1 million for failures in connection with anti-money laundering compliance.

The Star Sydney has been hit with $10 million in fines from the state’s gaming regulator, which accused the casino of allowing some patrons to gamble for over 36 hours straight.

Star's former group general counsel has told a judge she should not have to pay a $1.1 million fine for breaching her directors duties because she has suffered “extra-curial detriment” that includes unemployment. 

ASIC is seeking a $1.3 million fine against Star’s former CEO Matthias Bekier and a $1.1 million fine against ex-general counsel Paula Martin for breaching their duties by failing to warn the casino operator's board about money laundering risks. 

Star Entertainment has finalised the first stage of the sale of its stake in Queen's Wharf Brisbane, disposing of its interest in owner Destination Brisbane Consortium to its Hong Kong joint venture partners.

Former Star CEO Matthias Bekier is seeking leave to appeal a judge's finding that he and the casino operator's former GC breached their duties, while ASIC is mulling a challenge to the court's dismissal of its case against members of the Star board. 

A judge has put Star on the hook for over $1 million in Buildcorp's legal costs after largely losing its suit over alleged defective construction work on its Sydney casino, describing the case as "fairly disastrous".

Describing it as the most significant corporate governance action taken in his time at ASIC, the regulator's chief says the Star case is a wake-up call for directors.

The judgment in ASIC's case against Star's top executives and directors sounds a warning that board members need to proactively test information and serves as a "stark reminder" to general counsel that their duties are owed to the company, not management, experts tell Lawyerly.