While Star executives failed to provide the board with all the troubling information Sun City and other junkets, ASIC told the court that each of Star’s directors failed to take reasonable steps to oversee its executive team in relation to junket operators.
“The board cannot avoid responsibility for Star’s failure to manage those risks,” Higgins said.
The former Star executives who face fines and corporate bans if found guilty by the court, include former chairman John O’Neill, former Business Council of Australia boss Katie Lahey, investment banker Ben Heap and former Macquarie Bank chief Richard Sheppard.
Last week, Star’s former finance boss, Harry Theodore, broke ranks with his former colleagues and settled with ASIC on charges that he knowingly misled NAB about its ATMs being used to funnel more than $900 million into Star’s Sydney casino.
Star’s former chief executive Matt Bekier, is facing court on these and other charges.
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Star has been crushed by two inquiries that found it unfit to retain its casino licence.
Hundreds of millions of dollars in fines, rising regulatory expenses and a consumer downturn means Star is now operating at a financial loss.
It is reliant on its lenders, and potential help from the NSW and Queensland governments for its continued survival.
If current management cannot reach a long-term agreement with these parties – or agree to a significant asset sale – Star might be forced into administration.
