‘Negligent’ ex-Star boss could be hit with $1.3m fine
The Star’s former boss showed no remorse for failing to disclose the potential criminal risks of overseas shows that attracted billions of dollars to the casino, a court heard.
The Federal Court found in March that former Star chief executive Matthias Bekier failed to notify the board of suspicious behavior committed by Chinese Junket operator Suncity in 2018 and 2019.
This included bundles of cash delivered to the service desk in blue cooler bags or cardboard boxes, and staff hiding under blankets to stay out of view of CCTV cameras.
The Australian Securities and Investments Commission successfully prosecuted Mr Bekier and former Star general counsel Paula Martin for breach of duty.
On Wednesday, the watchdog demanded heavy fines against the couple.
The former chief executive must pay $1.3 million for serious misconduct, barrister David Arnott SC told Judge Michael Lee.
“The negligence label that we put does not fully convey what your Honor actually found,” he said.
Mr Arnott said Mr Bekier should have been banned from directing for eight years after failing to show any remorse or insight, although he did not deliberately ignore the alarm bells that were ringing.
He argued that the community should be protected from the former chief executive holding another managerial position.
Mr Bekier’s lawyer stated that a period of disqualification of 18 months would be preferable.
Justin Williams SC argued that the court found that the former chief executive was merely negligent and did not deliberately seek to cause any harm.
He disputed ASIC’s suggestions that Mr Bekier’s breaches had caused damage or loss to the company.
Mr Williams said even if his client had acted appropriately, there would still be a damning report on the Star’s failings in 2022, the revocation of its license and a $100 million fine from the casino watchdog.
Judge Lee had problems when he was told Mr Bekier’s lack of remorse was not an aggravating factor because he planned to appeal.
“What are we going to do? We don’t issue fines until the appeal is over, so people can come and express remorse for performance purposes?” the judge asked.
Mr Williams will discuss what sentence is appropriate when the hearing continues on Thursday.
Junkets and its international VIP players were hugely lucrative for Star, generating tens of billions of dollars for the business each year.
Suncity was the largest show partner, bringing in $2.1 billion for the casino group in fiscal 2017.
The Star also heard Suncity owner Alvin Chau claimed his visa was refused by Australian immigration after tons of cash were seized from a hotel room and that he was linked to the Macau trio.
Ms Martin and Mr Bekier also knew casino lender National Australia Bank had been misled in 2020 about concerns that gamblers were using Chinese UnionPay cards for gambling and were banned by the foreign card scheme.
The duo did not inform the board of directors about this matter.
ASIC urged the court to fine Ms Martin $1.1. million and will be banned from directing for seven years.
He did not contest this period of disqualification.
His lawyer will make a presentation on sentencing and other issues on Thursday.
In February 2025, Star’s former casino chief Greg Hawkins settled his case with ASIC and agreed to pay a $180,000 fine and an 18-month ban.
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.
Breaching anti-money laundering laws by allowing potential criminals to use the casino saw Star agree to pay a $150 million penalty to ASIC in February 2023.
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