Greg Hawkins, the former Chief Casino Officer of Star Entertainment, has agreed to settle with the Australian Securities and Investments Commission (ASIC) over misconduct related to his dealings with a large Macau junket operator with suspected criminal ties.
Under the proposed settlement, Hawkins will pay $180,000 ($114,680) and face an 18-month disqualification from managing ASX-listed companies. This comes after he was found to have breached his directors’ duties in two instances.
The Federal Court heard last week that Hawkins signed a significant contract with a prominent Macau junket operator, despite receiving warnings about suspicious activity at Star Sydney’s private gambling rooms. The court also revealed that former Star chairman John O’Neill received a document detailing the alleged criminal links of Alvin Chau, the Suncity junket’s founder, a year before the board approved a AU$30 million ($19.1 million) credit facility increase for Suncity. O’Neill forwarded this information to Star’s then-CEO Matt Bekier and its chief legal officer, Paula Martin.
In December 2022, ASIC initiated proceedings against Star’s former directors, including O’Neill and Bekier. The concerns about the company’s handling of money laundering risks prompted a government inquiry, which ultimately determined that Star was unfit to operate its Sydney casino.
Although Star continues to run the casino under a government-appointed manager, the inquiries in New South Wales and Queensland led to the departure of key executives and directors, putting the company on the brink of collapse.
ASIC accused Hawkins of failing to properly manage money laundering risks associated with the Suncity deal and not escalating concerns regarding the operator’s criminal links to the board. The regulator also alleged that Hawkins did not fulfill his obligations to ensure proper governance.
ASIC and Hawkins have reached a settlement where he will accept declarations of contravention regarding his conduct in 2018 and 2019. He has also agreed to pay a portion of ASIC’s costs.
Hawkins faced a maximum penalty of AU$1.3 million ($828,200) for the breaches but will settle for a lesser amount. He is currently serving as acting Chief Operating Officer at Bloomberry Resorts and Hotels in the Philippines, having been appointed in December 2024 following the retirement of Thomas Arasi.
Hawkins is the second former Star executive to settle, following the agreement of former CFO Harry Theodore. Theodore’s settlement includes a AU$60,000 ($38,267) fine and a nine-month suspension from ASX-listed companies.
The case is notable as it marks the first time ASIC has held all non-executive directors equally responsible for failures in due diligence, even when they were not directly involved in the misconduct.
