Two former Star executives found liable over money laundering failures
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- Australia’s Federal Court found former CEO Matthias (Matt) Bekier and former chief legal officer Paula Martin violated their duties as company officers.
- The case centred on the handling of risks linked to money laundering and criminal activity at Star’s casinos.
- Seven former non-executive directors were cleared of wrongdoing by the court.
Australia’s Federal Court has ruled that two former senior executives of The Star Entertainment Group breached their duties as corporate officers by failing to adequately manage risks associated with money laundering and criminal activity.
The ruling, delivered on 5 March 2026, marks a major outcome in proceedings brought by the Australian Securities and Investments Commission (ASIC).
Bekier and Martin found liable
The court found that Matt Bekier, Star’s former chief executive officer and managing director, and Paula Martin, the company’s former chief legal and risk officer, contravened section 180 of the Corporations Act 2001. That provision requires company officers to exercise their powers with reasonable care and diligence.
According to ASIC, Bekier failed in three key areas.
He did not adequately deal with a KPMG report that flagged deficiencies in Star’s anti-money laundering and counter-terrorism financing processes. He also failed to properly manage risks arising from Suncity’s operations in Salon 95, an exclusive gaming room provided to the junket operator.
Additionally, he did not sufficiently escalate concerns about the misuse of China UnionPay cards by casino customers. ASIC noted that over $900 million was obtained by Star customers using CUP cards at NAB ATMs on Star’s premises between 2013 and 2019.
Martin was found liable for failing to properly inform the board about the risks arising from Star’s dealings with Suncity. She was also found to have been involved in providing misleading information to National Australia Bank regarding the use of UnionPay cards.
However, the court found Bekier did not breach his duties in relation to expanding Star’s credit exposure to two junket customers, including Suncity, or in managing Star’s business association with Sixin Qin.
Non-executive directors cleared
The court dismissed ASIC’s case against seven former non-executive directors, ruling they had not breached their duties. Those cleared include former chair John O’Neill, along with Richard Sheppard, Katie Lahey, Sally Pitkin, Gerard Bradley, Benjamin Heap, and Zlatko Todorcevski.
The defence had argued that directors could not reasonably be expected to analyse the full volume of complex board materials presented to them. Justice Michael Lee ultimately accepted that management had not sufficiently brought critical information to the board’s attention.
ASIC Chair Joe Longo said:
“ASIC pursued this case because of the fundamental questions it raised about trust, governance and accountability at one of Australia’s largest casino operators.”
He added:
“The Court found that senior executives have a critical responsibility to identify serious risks, ensure those risks are properly managed, and escalate them to the board.”
The regulator noted it would carefully consider the judgment’s implications as the matter moves to a penalty phase. ASIC is expected to seek financial penalties against Bekier and Martin, as well as potential disqualification orders barring them from managing corporations.
Suncity’s massive influence at Star
Suncity was Star’s largest junket operator. Turnover from Suncity at Star’s casinos reached approximately A$2.1 billion in the 2017 financial year, rising to A$4 billion in 2018 and A$5.9 billion in 2019, according to ASIC’s filings.
Two other former Star executives — former chief financial officer Harry Theodore and former chief casino officer Gregory Hawkins — had already admitted breaching their duties before the trial commenced.
Implications for the sector
The ruling arrives as Star continues to navigate severe corporate and regulatory turbulence. The company has undergone a management overhaul, with Bally’s Corp now holding a significant investment stake. New CEO Bruce Mathieson Jr. is leading refinancing efforts aimed at stabilising the operator’s financial position.
Star’s shares fell to their lowest point since February following the court’s findings. The company’s ability to continue as a going concern remains uncertain, compounding the pressure from multiple regulatory investigations into governance and compliance failures across Australia’s casino industry.
For operators and directors across the sector, the judgment sends a clear signal. Executives at the top of high-risk industries face personal accountability when they fail to escalate critical compliance risks to their boards.
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