ASIC, lawyers for ex-Star directors knock back early trial

Australia’s corporate cop appears to have walked back on public complaints about delays to its blockbuster case against Star Casino’s former executives, apologising to the federal court after rejecting an offer to speed it up.

The Australian Securities & Investments Commission first launched its civil case in December 2022, alleging 11 of the casino’s former executives failed to make sure it complied with anti-money laundering rules.

After trial dates were set for February next year, Federal Court judge Michael Lee offered ASIC and armies of lawyers for the defendants an opportunity to bring it forward to June. But the corporate regulator and a number of barristers all told the court they were not available before February 2025.

Justice Lee said he believed later dates in February 2025 had caused some “unhappiness” and on Thursday, during a case management hearing, said he was “trying to accommodate the parties” by ensuring ASIC’s case could be heard as early as possible.

“ASIC complains it has been delayed … (I am) offering an opportunity to have it heard more quickly. But they are now content with the February 2025 dates,” he said.

“I don’t wish there to be criticism of this court … for delaying.”

ASIC — who first filed the civil case in December 2022 — and multiple barristers representing ex-directors named in the case declined the June option and a further offer to hold the trial in October.

Nine newspapers reported in December that ASIC was “known to be impatient with the delay”.

It also reported a comment from an ASIC spokesperson, who said at the time: “ASIC advised the court at the case management hearing on 16 August 2023 that it was ready to proceed to trial in 2024, and noted the importance of matters involving individual defendants progressing through the court system as quickly as possible.”

But on Thursday, ASIC’s barrister James Arnott SC told the court the regulator “regretted” the offence caused to Justice Lee, and commencing in February “remains the preferable” option.

“I can only apologise on behalf of my client,” he said.

“For our part, we certainly understand (his) honour deals with things expeditiously at all times. We think where we are now, a trial commencing in 2025 remains the preferable option.

“In terms of preparation which will take place between now and then … we should continue as planned and keep (the) allocated hearing dates in February 2025.”

A spokesman for ASIC said: “External counsel were not available for an earlier date.”

Star remains under intense scrutiny beyond the ASIC litigation, with casino inquiry boss Adam Bell SC just days ago hearing the company is still facing problems including fraud and falsification of welfare checks at a second regulatory probe.

ASIC sued the casino’s executives and board in December 2022, alleging they “failed to give sufficient focus to the risk of money laundering and criminal associations”.

Star’s former chair John O’Neill, former managing director and chief executive Matthias Bekier, along with Kathleen Lahey, Richard Sheppard, Gerard Bradley, Sally Pitkin, Benjamin Heap and Zlatko Todorcevski have all been named in the case.

The regulator also alleged Star’s ex-general counsel Paula Martin and chief casino officer Greg Hawkins breached their duties by failing to address money laundering risks in dealings with Asian gambling junket Suncity.

As well, they accused former chief financial officer Harry Theodore and Ms Martin of knowingly allowing misleading statements to be provided to National Australia Bank about the use of debit cards issued by China Union Pay International Ltd at NAB ATMs on Star’s premises.

“Those statements disguised the fact that Star was permitting CUP cards to be used for gambling, which was prohibited by CUP. ASIC is aware over $900 million was obtained by Star customers using CUP cards in NAB ATMs from 2013 to 2019,” the regulator said.

Justice Lee presided over Bruce Lehrmann’s failed defamation trial against Ten and Lisa Wilkinson. He found, on the balance of probabilities, Mr Lehrmann raped his former colleague Brittany Higgins inside Parliament House.

Financial crime watchdog Austrac also launched a case against Star in November 2022, alleging “serious and systemic noncompliance with Australia’s anti-money laundering and counter-terrorism financing … laws.” It is likely to be heard after ASIC’s matter.

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