Former Star Executives Fined and Banned by Federal Court

Former Star Entertainment Executives Disqualified and Fined – Federal Court Imposes Personal Penalties Over Governance Failures

Key Takeaways

• Former Star Entertainment CEO Mathias Bekier has been fined A$700,000 and banned from managing corporations for six years.
• Former chief legal and risk officer Paula Martin has been fined A$400,000 and banned for seven years.
• The Federal Court found both breached their duties in handling money laundering and criminal activity risks.
• They must also pay 45 per cent of the Australian Securities & Investments Commission’s legal costs.
• Proceedings form part of broader civil action against 11 current and former Star directors and officers.

Federal Court Orders Disqualification and Financial Penalties

Australia’s Federal Court has imposed significant penalties on two former senior executives of Star Entertainment Group following findings that they breached their duties in overseeing risk management at the casino operator.

Mathias Bekier, Star’s former chief executive officer and managing director, has been ordered to pay a pecuniary penalty of A$700,000. The Court also disqualified him from managing corporations for six years.

Paula Martin, who served as general counsel, company secretary, and chief legal and risk officer, has been ordered to pay A$400,000 and has been disqualified from managing corporations for seven years.

In addition to the financial penalties and disqualification orders, both executives were directed to pay 45 per cent of the costs of the proceedings brought by the Australian Securities & Investments Commission, known as ASIC.

Breaches Linked to Money Laundering and Criminal Risk Oversight

The Court previously determined that Bekier and Martin breached their duties to Star Entertainment in connection with the handling of risks associated with money laundering and criminal activity at one of Australia’s major casino operations.

On 5 March this year, the Federal Court found that both individuals contravened section 180 of the Corporations Act 2001, which sets out the duty of care and diligence owed by company officers.

Justice Michael Lee stated in relation to Bekier that senior executives of casino operators and public companies conducting enterprises with significant inherent risks must understand that failures of the kind established in the proceedings can lead to substantial personal consequences.

Regarding Martin, the Court found that she was aware of a range of concerning information connected to an overseas gambling junket. According to the judgment, she was required to report these matters to the Board but failed to do so. Justice Lee described this as a serious departure from the standards expected of a solicitor occupying such senior legal and risk roles within one of Australia’s largest casino operators.

The Court further noted that as governance and cultural failures become more pervasive, the obligation on those entrusted with legal and risk responsibilities increases, particularly in highly regulated industries such as casino gaming.

ASIC Emphasises Executive Accountability in Regulated Sectors

ASIC initiated civil penalty proceedings in December 2022 against 11 current and former directors and officers of Star Entertainment for alleged breaches of duty.

ASIC Chair Sarah Court said that senior executives carry a critical responsibility to identify, escalate, and properly manage serious risks within their organisations. She stated that the failures occurred in a highly regulated environment and contributed to significant governance breakdowns at Star.

Court added that penalties of this scale reflect the seriousness of the conduct and are intended to send a clear message to senior executives of listed companies that such failures are unacceptable.

The proceedings have produced mixed outcomes. In February 2025, former chief casino officer Gregory Hawkins and former chief financial officer Harry Theodore admitted to breaches of their duties. Hawkins was ordered to pay A$180,000 and was disqualified from managing corporations for 18 months. Theodore was fined A$60,000 and disqualified for nine months.

However, the Federal Court dismissed ASIC’s case against seven former non-executive directors after finding that they did not breach their duties.

Market Reaction and Corporate Context

Star Entertainment Group Ltd shares closed 1.03 per cent higher at A$0.098 in Sydney on Monday following the Court’s latest orders.

The rulings concern personal accountability rather than new corporate sanctions against Star itself. However, the findings relate directly to governance and risk management practices at one of Australia’s major casino operators, an industry subject to strict regulatory oversight due to the potential for money laundering and criminal infiltration.

For international observers and users of gaming platforms, the case illustrates how regulators and courts may pursue individual executives for governance failures in licensed gambling businesses. The proceedings also demonstrate how civil penalty actions can extend over multiple years and involve a range of senior management and board members.

Our Assessment

The Federal Court’s decisions impose substantial financial penalties and multi year management bans on two former senior executives of Star Entertainment for breaches of duty related to risk oversight. The case forms part of broader civil proceedings initiated by ASIC against 11 individuals and underscores the application of section 180 of the Corporations Act 2001 in the casino sector. While several former executives have been penalised, the Court dismissed claims against seven non-executive directors, resulting in differentiated outcomes within the same enforcement action.