The Federal Court handed down judgment in relation to the Third and Fourth Defendant in Australian Securities and Investments Commission v Hawkins [2025] FCA 121.
The matter arises from proceedings in which ASIC seeks civil penalties against 11 members of the executive team and board of The Star Entertain Group Ltd (Star). The conduct in question concerned an arrangement whereby cards issued by China UnionPay (CUP) were used at machines located within Star operated hotels.
The Fourth Defendant, Mr Theodore, was alleged as Star’s former CFO to have contravened s 180(1) of the Corporations Act 2001 (Cth) (Act) by failing to discharge his duties in respect of representations Star made to NAB and CUP in respect of the use of CUP-issued debit cards at the casino.
Shortly before the final hearing, two of the defendants – Mr Theodore and a former Managing Director – reached agreement with ASIC as to contravention and penalty.
Following a hearing before Lee J regarding whether his Honour, who is hearing the principal proceeding, should hear the penalty proceedings in respect of these two defendants, the penalty proceedings were heard by Stewart J.
Justice Stewart found that the representations made to NAB were “inaccurate, incomplete and misleading”. Orders were made in respect of the Fourth Defendant imposing a pecuniary penalty of $60,000 and disqualification from managing corporations for 9 months under s 206C(1) of the Act, following detailed submissions regarding various mitigating factors.
Garry Rich SC, Greg O’Mahoney and Adam Khadra appeared for the Fourth Defendant, instructed by Paul Reidy, Jia Lee and Joseph El Hagg from JWS. Greg previously represented Mr Theodore in the NSW Independent Casino Commission public inquiry conducted by Adam Bell SC.
The judgment of Stewart J can be accessed here: https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2025/2025fca0121
The judgment of Lee J can be accessed here:
https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2025/2025fca0084
