Australian regulator fines two ex-Star Entertainment executives for breach of duty

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(Reuters) -Australia’s corporate regulator said on Monday it fined two former Star Entertainment executives a combined A$240,000 ($153,096) and disqualified them from managing any companies after they admitted to breaches of duty while at the casino operator.

The Australian Securities and Investment Commission (ASIC) said it fined Star’s former chief financial officer (CFO), Harry Theodore, A$60,000 and disqualified him from managing corporations for nine months.

It fined Star’s former chief casino officer, Gregory Hawkins, A$180,000 and disqualified him from managing corporations for 18 months.

ASIC said Theodore was found to have failed to prevent Star from sending correspondence to National Australia Bank on November 7 2019 that contained inaccurate representations about the use of China Union Pay cards for gambling purposes at NAB terminals in Star’s casino.

The regulator also said Hawkins was found to have, among other allegations, failed to recommend that Star’s board review or terminate their relationship with Suncity, a former Macau junket operator whose CEO was arrested in end-2021 over alleged links to cross-border gambling and money laundering.

The federal court found breaches of duties by the two executives based on facts agreed between the parties, ASIC said.

The trial of nine other former Star directors and officers is still ongoing, ASIC said.

Star has been at the centre of constant regulatory inquiries that have hit other Australian casino operators as well, leading to casino closures and top executive departures.

Star did not immediately respond to a Reuters request for comment. ($1 = 1.5676 Australian dollars)

(Reporting by Shivangi Lahiri in Bengaluru; Editing by Mrigank Dhaniwala and Savio D’Souza)