The former CEO of SkyCity Entertainment is among eight executives and members of the board named in a lawsuit over AML failures, which led to the company facing a AU$67 million ($44.6 million) fine from Australia’s financial watchdog.
The nation’s Federal Court ordered the Australia and New Zealand-based gaming operator to pay the proposed fine to the Australian Transaction Reports and Analysis Center (AUSTRAC) last year, primarily due to failings in due diligence.
According to the Australian Financial Review, SkyCity shareholder Stephen Wright has now filed with the New South Wales Supreme Court to attempt to recover some of the funds from those named, claiming the failings occurred under their oversight.
The possible compensation would be paid out to SkyCity.
According to the AFR, those named by Wright include former SkyCity Chief Executive Graeme Stephens, his successor Michael Ahearne, former deputy chair Bruce Carter and numerous other officials.
The defendants have yet to file their defense.
SkyCity had an independent review of its SkyCity Adelaide casino property put on hold until after Australian courts had approved the AUSTRAC fine. The review was set to finish in May of this year.
