Former Star chief executive Matthias Bekier has shown no remorse after failing to disclose possible criminal risks of overseas junkets that drew billions of dollars into the casino, a court has been told.
Court findings on misconduct
The Federal Court found in March that Mr Bekier failed to inform the board of suspicious conduct 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 junket staff hiding under blankets to avoid CCTV cameras.
The Australian Securities and Investments Commission (ASIC) successfully sued Mr Bekier and former Star general counsel Paula Martin for breaches of their duties. On Wednesday, the watchdog sought hefty fines against the pair.
Penalties sought
Barrister David Arnott SC told Justice Michael Lee that the ex-chief executive should pay $1.3 million for his serious misconduct. He argued that Mr Bekier should be banned from being a director for eight years, citing a lack of remorse or insight. "The label of negligence we say doesn't give full force to what Your Honour's actually found," Mr Arnott said. He added that the community needed protection from Mr Bekier holding another executive position.
In contrast, Mr Bekier's barrister, Justin Williams SC, submitted that an 18-month disqualification period was preferable. He argued that the court found the ex-chief executive was merely negligent and did not intentionally cause harm. Mr Williams disputed ASIC's suggestion that Mr Bekier's contraventions caused damage or loss to the company, stating that even if his client had acted appropriately, Star would still have faced a damning report in 2022, licence revocation, and a $100 million penalty from the casino watchdog.
Remorse and appeal issues
Justice Lee raised concerns when told that Mr Bekier's lack of contrition was not an aggravating factor because he intended to appeal. "What do we do? We don't do pecuniary penalties until after the appeal so people can come along and do performative remorse?" the judge asked. Mr Williams will discuss appropriate penalties as the hearing continues on Thursday.
Background on junkets
Junkets and their international VIP players were highly lucrative for Star, bringing in tens of billions of dollars annually. Suncity was its largest junket partner, drawing $2.1 billion into the casino group in the 2017 financial year. Star also learned that Suncity's owner, Alvin Chau, had his visa denied by Australian immigration after bundles of cash were seized in a hotel room and he was allegedly linked to a Macau triad.
Ms Martin and Mr Bekier also knew that the casino misled lender National Australia Bank in 2020 about concerns that gamblers were using China UnionPay cards for gambling, which was prohibited by the foreign card scheme. They did not inform the board of this.
ASIC's proposed penalties for Martin
ASIC has urged the court to fine Ms Martin $1.1 million and ban her from acting as a director for seven years. She has not opposed this disqualification period. Her barrister will make submissions about penalty and other issues on Thursday.
Other former executives penalised
In February 2025, Star's former chief casino officer Greg Hawkins settled his case with ASIC, agreeing to pay $180,000 in penalties and an 18-month ban. Former chief financial officer Harry Theodore agreed to pay $60,000 and was banned from managing corporations for nine months. The breaches of anti-money laundering laws, which allowed potential criminals to use the casino, led Star to agree to pay $150 million in penalties to ASIC in February 2023.
