The ASIC Blockbuster Hits Aussie Court
When your company’s getting cozy with alleged crime bosses, maybe don’t leave the receipts? That’s the free legal advice Star Entertainment’s former general counsel Paula Martin probably wishes she’d followed before landing in Australia’s Federal Court hot seat.
Martin — who climbed from group general counsel to chief legal and risk officer during her tenure — is now starring in ASIC’s latest corporate accountability blockbuster alongside 10 other executives. The regulatory agency is bringing civil penalty proceedings faster than a high-roller loses chips at the baccarat table.
The courtroom drama hit peak awkwardness when Martin admitted calling her lawyer “in a panic” after realizing she’d bungled her testimony about when she discovered Suncity boss Alvin Chau’s alleged organized crime connections. Oops! Turns out there’s a slight difference between learning about your casino’s ties to criminal enterprises in 2017 versus 2019.
Federal Court judge Michael Lee wasn’t exactly thrilled with this memory refresh. Nothing says “credible witness” like frantically dialing counsel mid-testimony to correct the record.
ASIC alleges Star’s leadership team collectively shrugged at money laundering risks while maintaining relationships with junket operators shadier than a Vegas casino floor at midnight. The case highlights the eternal question: at what point should corporate lawyers stop nodding along when their employers are cozying up to folks who might feature on international watchlists?
The six-week trial continues, with corporate Australia watching nervously. The message from regulators is crystal clear: if your risk management strategy consists of “panic calls” and selective amnesia, perhaps you should fold your hand now.
For Star’s former GC and her colleagues, this regulatory showdown could result in penalties more painful than listening to a first-year associate explain blockchain technology at the holiday party.
