The Star faces $400m implosion over crime concerns
Despite his known criminal links, one man was allowed alongside many other high-risk gamblers to funnel hundreds of millions of dollars through The Star's casinos.
These concerns fell on deaf ears of senior management who failed to impose adequate anti-money laundering and counter-terrorism-financing controls, the Federal Court heard on Wednesday.
Financial watchdog AUSTRAC is seeking a penalty of $400 million for what it says were "manifest failures" by the casino.
"Four hundred millions dollars is not an oppressive penalty. In this case, it's an appropriate penalty," the agency's barrister Simon White SC said on the first day of a court hearing.
While making a slew of admissions around the inadequacy of its processes, the embattled casino has urged Justice Cameron Moore to issue a much lower penalty of $100 million.
It argues this is the maximum amount it can pay without being pushed into liquidation.
In April, the failing casino business was saved from entering administration through a $300 million rescue package from US gaming giant Bally's Corporation.
Star's group chief operating officer Frank Krile was grilled about the company's capacity to pay during a closed court session earlier on Wednesday.
In May 2024, Crown agreed to pay $450 million for similar money-laundering and terrorism-financing breaches.
Mr White said the systemic failures of Star's systems, policies and procedures were enabled by senior management and the board.
"Those failures were the inevitable result of a corporate culture that prioritised profit over compliance," he told Justice Cameron Moore.
He detailed a "case study" of the Suncity junket which funnelled $11.8 billion into the Star's Sydney casino and $2.9 billion into its Brisbane and Gold Coast premises between November 2016 to November 2020.
"Eye-watering amounts" of cash were gambled at these casinos over the four years by high-risk individuals, Mr White said.
One customer with known links to overseas triads and organised crime associates was given a $266.7 million cheque cashing facility, Justice Moore was told.
He was also allowed to transfer $250,000 to someone with no gambling history with the Star.
Suncity was given exclusive use of its own private gaming room Salon 95.
It operated its own service desk where cash and chips could be exchanged without oversight of the casino, Mr White said.
In an email in March 2018, Star's general counsel corporate Oliver White was "quite firm" in not allowing this to happen.
However, he was urged by his superiors to reconsider his advice and the service desk was eventually established.
Mr White said transactions were made at this desk using suitcases, backpacks, sports bags and esky bags full of cash.
Staff would repack bundles of cash in separate bags before handing them over, shield certain transactions from CCTV cameras by using a blanket and allowed those who hadn't even gambled with them to withdraw large amounts of cash, the barrister said.
"We have an entity within our four walls which is totally non-compliant," senior investigator Andrew McGregor wrote in an email to management in May 2018.
Further problems were highlighted in a 2018 report by the Hong Kong Jockey Club as well as in media reports about criminal links to one key Suncity associate allowed to gamble at the Star.
It was only after that gambler's arrest by Macau police the casino stopped doing business with him.
He was charged with money laundering, criminal association and illegal gambling, the court heard.
"The Suncity case study reveals the extent to which management, senior management, abdicated their responsibility," Mr White said.
"There was a deliberate courting of (money-laundering-terrorism-financing) risks and likely contraventions."
The hearing continues on Thursday.
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About 300 people attended the vigil on the steps of Victorian parliament, holding signs that read "Who is the real thief?" and "Genocide in progress". Senator Thorpe said more must be done to stop the "genocide" in Australia, noting it had been five years since the global Black Lives Matter movement was ignited after the police killing of George Floyd in the US. She vowed to support the family's call for an independent investigation into police. NT Police on Friday confirmed the officers had not been stood down. Chief Minister Lia Finocchiaro rejected calls for an external investigation, saying police are the right authority to carry it out coupled with a coronial inquiry. Vigils have been organised across the nation, including Sydney, Brisbane, and Wollongong on Saturday with events in Perth and Adelaide to follow on Sunday. 13YARN 13 92 76 Lifeline 13 11 14 beyondblue 1300 22 4636 Vigils calling for justice are continuing across Australia as part of a national week of action following the death of a young Aboriginal man in police custody. Kumanjayi White, 24, who had a mental disability, died on May 27 shortly after being forcibly restrained by two plain-clothes police officers inside a supermarket in Alice Springs. His death has sparked national outcry, with his family demanding an independent inquiry and for the officers involved to be stood down. Speaking at a rally outside Victoria's parliament on Friday, Mr White's grandfather, Warlpiri Elder Ned Jampijinpa Hargraves, said his grandson was "killed for no good reason." "What have we done to you. We are supposed to be working together in harmony but (police) are taking away our lives," he said. "He was not a criminal. He was a quiet, young man." The rally was also attended by Krauatungalung Elder Uncle Robbie Thorpe, Senator Lidia Thorpe, and Aunty Donna Kerr, the mother of Joshua Kerr. Ms Kerr spoke of the urgent need for justice, recalling how her own son, an Indigenous man, was found unconscious in his prison cell and later died in August 2022. "Shame on this country. Shame on what they have done to our kids and families in incarceration. There is not a day that goes past where I pinch myself because my son is never coming home," she said. "How are we here today, going three years since my boy, now another child, shame. Justice is what we want in this country." About 300 people attended the vigil on the steps of Victorian parliament, holding signs that read "Who is the real thief?" and "Genocide in progress". Senator Thorpe said more must be done to stop the "genocide" in Australia, noting it had been five years since the global Black Lives Matter movement was ignited after the police killing of George Floyd in the US. She vowed to support the family's call for an independent investigation into police. NT Police on Friday confirmed the officers had not been stood down. Chief Minister Lia Finocchiaro rejected calls for an external investigation, saying police are the right authority to carry it out coupled with a coronial inquiry. Vigils have been organised across the nation, including Sydney, Brisbane, and Wollongong on Saturday with events in Perth and Adelaide to follow on Sunday. 13YARN 13 92 76 Lifeline 13 11 14 beyondblue 1300 22 4636 Vigils calling for justice are continuing across Australia as part of a national week of action following the death of a young Aboriginal man in police custody. 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Perth Now
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The sound of a passing tram is all that breaks the silence as hundreds of people gather outside parliament, standing together in unity to honour a young Aboriginal man who died in police custody. Relatives, friends and allies shut down Melbourne's Spring Street in a powerful vigil on Friday, part of a national week of action demanding justice for 24-year-old Kumanjayi White and an end to Indigenous deaths in custody. Mr White, who had a mental disability, died on May 27 shortly after being forcibly restrained by two plain-clothes police officers inside a supermarket in Alice Springs. Police allege the 24-year-old, originally from the outback community of Yuendumu, was shoplifting and had assaulted a security guard who confronted him in the confectionery aisle. Speaking at the rally on Friday, Mr White's grandfather, Warlpiri Elder Ned Jampijinpa Hargraves, said his grandson was "killed for no good reason". "What have we done to you? 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The Yuendumu community also lost 19-year-old Kumanjayi Walker in 2019 when he was fatally shot by then NT police officer Zachary Rolfe during a bungled arrest. Mr Rolfe was found not guilty of all charges over the death in 2022. The Kumanjayi Walker coronial findings have been postponed until July 7 after Kumanjayi White's death in custody. Rallies to protest Mr White's death in custody and urge an independent inquiry were planned for Melbourne, Alice Springs and Cairns on Friday and Sydney, Brisbane, Wollongong and Adelaide on Saturday. 13YARN 13 92 76 Lifeline 13 11 14 beyondblue 1300 22 4636 The sound of a passing tram is all that breaks the silence as hundreds of people gather outside parliament, standing together in unity to honour a young Aboriginal man who died in police custody. Relatives, friends and allies shut down Melbourne's Spring Street in a powerful vigil on Friday, part of a national week of action demanding justice for 24-year-old Kumanjayi White and an end to Indigenous deaths in custody. Mr White, who had a mental disability, died on May 27 shortly after being forcibly restrained by two plain-clothes police officers inside a supermarket in Alice Springs. Police allege the 24-year-old, originally from the outback community of Yuendumu, was shoplifting and had assaulted a security guard who confronted him in the confectionery aisle. Speaking at the rally on Friday, Mr White's grandfather, Warlpiri Elder Ned Jampijinpa Hargraves, said his grandson was "killed for no good reason". "What have we done to you? We are supposed to be working together in harmony but (police) are taking away our lives," he said. "That is not good. (He) was only getting a packet of lollies. Shame on you. "He was not a criminal. He was a quiet, young man." The rally was also attended by Krautungalung Elder Uncle Robbie Thorpe, senator Lidia Thorpe and Aunty Donna Kerr, the mother of Joshua Kerr. Ms Kerr spoke of the urgent need for justice, recalling how her son, an Indigenous man, was found unconscious in his prison cell and later died in August 2022. About 300 people attended the vigil, holding signs that read "Who is the real thief?" and "Genocide in progress". Senator Thorpe vowed to support the family's call for an independent investigation into police. "We are here to call for the footage that was taken of that murder in the supermarket," she told the large crowd. "The family want to see the footage ... so they can see what really happened." NT Police on Friday confirmed officers have not been stood down. The force and NT Chief Minister Lia Finocchiaro have strongly rejected calls for an external investigation, saying police are the right authority to carry it out, coupled with a coronial inquiry. Mr White's family expressed anger over the rejection of calls for an independent investigation, backing the Central Land Council's demand for Canberra to withhold funding from the NT government until it agrees to establish an independent body to examine police misconduct. NT Police has said its investigation would abide by strict protocols with full transparency and be independently reviewed by the coroner. "We ask the community to allow the investigation to take its course," Acting Commissioner Martin Dole said in a statement. "We are committed to a full and fair examination of the facts." Federal Indigenous Australians Minister Malarndirri McCarthy has said an independent death in custody probe might be warranted "in the interest of having some separation". The Yuendumu community also lost 19-year-old Kumanjayi Walker in 2019 when he was fatally shot by then NT police officer Zachary Rolfe during a bungled arrest. Mr Rolfe was found not guilty of all charges over the death in 2022. The Kumanjayi Walker coronial findings have been postponed until July 7 after Kumanjayi White's death in custody. Rallies to protest Mr White's death in custody and urge an independent inquiry were planned for Melbourne, Alice Springs and Cairns on Friday and Sydney, Brisbane, Wollongong and Adelaide on Saturday. 13YARN 13 92 76 Lifeline 13 11 14 beyondblue 1300 22 4636 The sound of a passing tram is all that breaks the silence as hundreds of people gather outside parliament, standing together in unity to honour a young Aboriginal man who died in police custody. Relatives, friends and allies shut down Melbourne's Spring Street in a powerful vigil on Friday, part of a national week of action demanding justice for 24-year-old Kumanjayi White and an end to Indigenous deaths in custody. Mr White, who had a mental disability, died on May 27 shortly after being forcibly restrained by two plain-clothes police officers inside a supermarket in Alice Springs. Police allege the 24-year-old, originally from the outback community of Yuendumu, was shoplifting and had assaulted a security guard who confronted him in the confectionery aisle. Speaking at the rally on Friday, Mr White's grandfather, Warlpiri Elder Ned Jampijinpa Hargraves, said his grandson was "killed for no good reason". "What have we done to you? We are supposed to be working together in harmony but (police) are taking away our lives," he said. "That is not good. (He) was only getting a packet of lollies. Shame on you. "He was not a criminal. He was a quiet, young man." The rally was also attended by Krautungalung Elder Uncle Robbie Thorpe, senator Lidia Thorpe and Aunty Donna Kerr, the mother of Joshua Kerr. Ms Kerr spoke of the urgent need for justice, recalling how her son, an Indigenous man, was found unconscious in his prison cell and later died in August 2022. About 300 people attended the vigil, holding signs that read "Who is the real thief?" and "Genocide in progress". Senator Thorpe vowed to support the family's call for an independent investigation into police. "We are here to call for the footage that was taken of that murder in the supermarket," she told the large crowd. "The family want to see the footage ... so they can see what really happened." NT Police on Friday confirmed officers have not been stood down. The force and NT Chief Minister Lia Finocchiaro have strongly rejected calls for an external investigation, saying police are the right authority to carry it out, coupled with a coronial inquiry. Mr White's family expressed anger over the rejection of calls for an independent investigation, backing the Central Land Council's demand for Canberra to withhold funding from the NT government until it agrees to establish an independent body to examine police misconduct. NT Police has said its investigation would abide by strict protocols with full transparency and be independently reviewed by the coroner. "We ask the community to allow the investigation to take its course," Acting Commissioner Martin Dole said in a statement. "We are committed to a full and fair examination of the facts." Federal Indigenous Australians Minister Malarndirri McCarthy has said an independent death in custody probe might be warranted "in the interest of having some separation". The Yuendumu community also lost 19-year-old Kumanjayi Walker in 2019 when he was fatally shot by then NT police officer Zachary Rolfe during a bungled arrest. Mr Rolfe was found not guilty of all charges over the death in 2022. The Kumanjayi Walker coronial findings have been postponed until July 7 after Kumanjayi White's death in custody. Rallies to protest Mr White's death in custody and urge an independent inquiry were planned for Melbourne, Alice Springs and Cairns on Friday and Sydney, Brisbane, Wollongong and Adelaide on Saturday. 13YARN 13 92 76 Lifeline 13 11 14 beyondblue 1300 22 4636 The sound of a passing tram is all that breaks the silence as hundreds of people gather outside parliament, standing together in unity to honour a young Aboriginal man who died in police custody. Relatives, friends and allies shut down Melbourne's Spring Street in a powerful vigil on Friday, part of a national week of action demanding justice for 24-year-old Kumanjayi White and an end to Indigenous deaths in custody. Mr White, who had a mental disability, died on May 27 shortly after being forcibly restrained by two plain-clothes police officers inside a supermarket in Alice Springs. Police allege the 24-year-old, originally from the outback community of Yuendumu, was shoplifting and had assaulted a security guard who confronted him in the confectionery aisle. Speaking at the rally on Friday, Mr White's grandfather, Warlpiri Elder Ned Jampijinpa Hargraves, said his grandson was "killed for no good reason". "What have we done to you? We are supposed to be working together in harmony but (police) are taking away our lives," he said. "That is not good. (He) was only getting a packet of lollies. Shame on you. "He was not a criminal. He was a quiet, young man." The rally was also attended by Krautungalung Elder Uncle Robbie Thorpe, senator Lidia Thorpe and Aunty Donna Kerr, the mother of Joshua Kerr. Ms Kerr spoke of the urgent need for justice, recalling how her son, an Indigenous man, was found unconscious in his prison cell and later died in August 2022. About 300 people attended the vigil, holding signs that read "Who is the real thief?" and "Genocide in progress". Senator Thorpe vowed to support the family's call for an independent investigation into police. "We are here to call for the footage that was taken of that murder in the supermarket," she told the large crowd. "The family want to see the footage ... so they can see what really happened." NT Police on Friday confirmed officers have not been stood down. The force and NT Chief Minister Lia Finocchiaro have strongly rejected calls for an external investigation, saying police are the right authority to carry it out, coupled with a coronial inquiry. Mr White's family expressed anger over the rejection of calls for an independent investigation, backing the Central Land Council's demand for Canberra to withhold funding from the NT government until it agrees to establish an independent body to examine police misconduct. NT Police has said its investigation would abide by strict protocols with full transparency and be independently reviewed by the coroner. "We ask the community to allow the investigation to take its course," Acting Commissioner Martin Dole said in a statement. "We are committed to a full and fair examination of the facts." Federal Indigenous Australians Minister Malarndirri McCarthy has said an independent death in custody probe might be warranted "in the interest of having some separation". The Yuendumu community also lost 19-year-old Kumanjayi Walker in 2019 when he was fatally shot by then NT police officer Zachary Rolfe during a bungled arrest. Mr Rolfe was found not guilty of all charges over the death in 2022. The Kumanjayi Walker coronial findings have been postponed until July 7 after Kumanjayi White's death in custody. Rallies to protest Mr White's death in custody and urge an independent inquiry were planned for Melbourne, Alice Springs and Cairns on Friday and Sydney, Brisbane, Wollongong and Adelaide on Saturday. 13YARN 13 92 76 Lifeline 13 11 14 beyondblue 1300 22 4636
