Australian court finds two ex-Star executives in breach of duty, regulator says

March 5 (Reuters) – Australia’s corporate regulator said on Thursday it has found two former senior executives of Star Entertainment in breach of duties over the handling of risks associated with money laundering and criminal activity.

The Australian Securities and Investment Commission (ASIC) said the federal court found Star’s former CEO and Managing Director, Matthias Bekier, and former Chief Legal & Risk Officer, Paula Martin, violated the law, while dismissing the regulator’s allegations against seven former non-executive directors.

The court determined that Bekier had not breached his duties in relation to the approval of expanding Star’s credit exposure to two of its gambling junket customers, including Suncity, and the management of Star’s business association with Sixin Qin, ASIC said.

Martin failed to advise the board on the risks arising from Star’s deal with Suncity and was also involved in misleading the casino operator’s banker, National Australia Bank, in relation to the use of CUP cards by Star customers, ASIC added.

ASIC said it would seek the court’s order to impose financial penalties on both executives and request their disqualification from managing corporations for a specified period.

Shares of the company ended 4.2% lower at A$0.115, their lowest close since February 17.

(Reporting by Sherin Sunny in Bengaluru; Editing by Sumana Nandy and Rashmi Aich)