The Australian Securities & Investments Commission (ASIC) has obtained Federal Court penalties and corporation management disqualifications against two former executives of The Star Entertainment Group Ltd after they admitted breaches of their duties under section 180(1) of the Corporations Act 2001. Former Chief Casino Officer Gregory Hawkins was fined AUD 180,000 and disqualified for 18 months, while former Chief Financial Officer Harry Theodore was fined AUD 60,000 and disqualified for nine months. Based on agreed facts, the Court found Mr Hawkins breached his duty in 2018 and 2019 by approving an agreement granting the gambling junket Suncity exclusive access to the Sydney casino’s private gaming room, Salon 95, despite knowing the conduct of Suncity representatives exposed Star to the risk of legal breaches or being deemed unsuitable to hold a casino licence. The findings also covered failures to report relevant information to the board, to inform the board of further information including conduct of players in Salon 95 and media reporting about Suncity and its associates, and to recommend reviewing or terminating the relationship. Mr Theodore was found to have breached his duty by failing to prevent Star sending correspondence to National Australia Bank on 7 November 2019 containing inaccurate, incomplete and misleading representations about the use of China Union Pay cards for gambling purposes at NAB terminals located within Star’s casino. ASIC’s civil penalty trial continues against the remaining nine former Star directors and officers. ASIC has closed its case and the matter has been adjourned to 5 March 2025.

Original source View in tracker