Star’s former top boss and its legal counsel both breached their director’s duties during the casino’s scandalous Chinese money laundering era, the Federal Court has found.

In a seething judgement, Justice Michael Lee found only partly in favour of the corporate regulator ASIC, which bought the case against a group of Star executives and directors in 2022.

ASIC’s case was filed after news of the explosive money laundering scandal broke at Australia’s second biggest casino.

The culture of senior management was “dysfunctional” and “unethical”, Justice Lee noted in his remarks. 

He added that it fell to investigative journalism and a statutory inquiry to expose the extent of the company’s problems, rather than the board or management.

Facing millions in fines

While nine former Star executives and directors faced the case, only two — former CEO Matthias Bekier and its former lawyer Paula Martin — gave evidence on the stand.

Today, Justice Lee found both Mr Bekier and Ms Martin “failed” to exercise their powers and duties as directors, in breach of section 180 of the Corporations Act, between 2017 and 2019.

Justice Lee specifically found former Star CEO Matthias Bekier should have been aware a Chinese junket operator had been accused of being involved in money laundering.

However, his responsibility was more around Star Casino’s exposure to credit risk, Justice Lee noted.

“The primary foreseeable risk if any debt owing was not paid or recovered,” he said.

“I’m satisfied Mr Bekier breached section 180 of the Corporations Act.”

Justice Lee also specifically noted inconsistencies in Ms Martin’s testimony under cross-examination, describing it as “under strain” and unreliable. 

“Ms Martin was an unimpressive witness,” Justice Lee said.

Between them, Ms Martin and Mr Bekier had seven breaches of director’s duties substantiated between them.

Each breach carries a maximum penalty of up to $1,050,000, so the pair faces total fines in the millions. 

However, Justice Lee found ASIC did not make its case in relation to seven others, Richard Sheppard, Katie Lahey, Gerard Bradley, Sally Pitkin, Ben Heap and Zlatko Todorcevski.

Justice Lee made this ruling, despite noting that board members were required to accurately deal with the volume of documentation often handed to them.

“This was no watery enterprise, and the role demanded vigilance,” Justice Lee said.

Two other former directors, Gregory Hawkins and Harry Theodore, originally prosecuted through ASIC’s case, have already been penalised $180,000 and $60,000 after admitting to breaches before trial.

ASIC lodged ‘tsunami’ of evidence

Justice Lee also criticised the corporate watchdog’s case early in his judgement, describing it as “pregnant” with “complex” and “dense” language and definitions.

“ASIC tendered a tsunami” of material to back its case, he added.

Star is Australia’s second biggest casino operator after Crown. It has gambling and entertainment venues in Sydney, Brisbane and the Gold Coast.

The gaming company has been facing financial ruin for years, with Star posting back-to-back losses and recently taking a rescue deal from a US casino group and a local billionaire.

The deal was approved late last year by the Queensland and NSW regulators.

Star has also faced inquiries and fines over the Chinese money laundering scandal. 

Its competitor Crown has also been the subject of multiple inquiries including a royal commission over links to criminal gangs and money laundering.

The Federal Court will set a date within the next seven days to hand down orders and penalties.

Editor’s note 5/3/2026: This article has been amended to reflect that Mr Bekier and Ms Martin could face fines in the millions. An earlier version of the article said they could face fines of up to $7 million.Â