Ex-Star boss in breach over ‘dysfunctional’ culture
The former chairman of casino operator Star breached company duties by overseeing a “dysfunctional and unethical” culture in which key information about potential crime risks was withheld, a court has found.
In a landmark ruling handed down on Thursday, the Federal Court said former Star chief executive Matthias Bekier failed to pass on details of questionable behavior committed by staff of Chinese operator Junket in 2018 and 2019.
This included cash being delivered to the service desk in blue cooler bags and security guards hiding under blankets to stay out of view of CCTV cameras.
Judge Michael Lee wrote that Mr. Bekier should have suggested terminating Suncity’s contract but did not do so. 501-page decision It was published on Thursday.
“Warning signals were flashing, alarm bells were ringing,” the judge wrote.
“Mr. Bekier should have ensured that the board was kept informed of all Suncity-related matters.”
The then boss was also “well aware” that Star had provided false or misleading responses to lender National Australia Bank in 2020 about concerns gamblers were using Chinese UnionPay cards for gambling banned by the foreign card scheme.
A Star email to NAB and China UnionPay falsely claimed the cards were used only for “non-gambling purposes.”
“The prevailing ‘culture’ (at Star) was so dysfunctional and unethical that senior management was slow to prevent Junket operators from behaving improperly and lied to bankers to gain an ongoing business advantage,” Justice Lee said.
The judge found that both Mr Bekier and Paula Martin, Star’s former company secretary and general counsel, had breached company law by failing to disclose Suncity and China UnionPay exposures to the board.
The decision marks a partial victory for the Australian Securities and Investments Commission, which launched proceedings against Mr Bekier, Ms Martin and nine other executive and non-executive directors in 2022.
Former casino chief Greg Hawkins settled the case in February 2025, admitting he withheld information about Suncity’s conduct.
He was fined $180,000, paid $65,000 in ASIC’s legal costs and was banned from running a company for 18 months.
At the same time, former chief financial officer Harry Theodore agreed to pay a $60,000 fine and was banned from managing companies for nine months.
It did not stop the casino from mistakenly emailing NAB and CUP about their credit cards being used by Chinese gamblers.
On Thursday Judge Lee dismissed ASIC’s case against former Star board members John O’Neill, Wallace Sheppard, Kathleen Lahey, Gerard Bradley, Sally Pitkin, Benjamin Heap and Zlatko Todorcevski.
The law does not require board members to know everything management does, the judge said.
A hearing on the sentences and restraining orders against Mr. Bekier and Ms. Martin will be held at a later date.
A spokesman for the Star declined to comment.
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