Star’s former CEO, Matthias Bekier, and former lawyer Paula Martin were found to have breached their directors’ duties during the money laundering scandal in Australia. The case was filed by the corporate regulator ASIC in 2022, and on March 5, 2026, Justice Michael Lee ruled partly in favor of the regulator, calling Star’s senior management
Star’s former CEO, Matthias Bekier, and former lawyer Paula Martin were found to have breached their directors’ duties during the money laundering scandal in Australia.
The case was filed by the corporate regulator ASIC in 2022, and on March 5, 2026, Justice Michael Lee ruled partly in favor of the regulator, calling Star’s senior management dysfunctional and unethical.
Nine former Star executives were accused in the case, but only Bekier and Martin gave evidence on the stand, after which the judge ruled that the two failed to exercise their duties and broke Section 180 of the Corporations Act between 2017 and 2019, with Justice Lee additionally noting that Martin’s testimony under cross-examination was unreliable and inconsistent.
Justice Lee stated:
“The primary foreseeable risk is if any debt owing was not paid or recovered. I’m satisfied Mr. Bekier breached section 180 of the Corporations Act. Ms. Martin was an unimpressive witness.”
In total, seven breaches of the law were found, and each breach has a maximum penalty of up to $1,050,000.
ASIC’s chair, Joe Longo, responded:
“ASIC will always require directors and executives to meet the highest standards of corporate governance because of the crucial role they play in maintaining trust. Given the length of the judgment, ASIC will carefully consider its implications as these proceedings move to the penalty phase.”
Regarding the seven other individuals who were accused, including Richard Sheppard, Katie Lahey, Gerard Bradley, Sally Pitkin, Ben Heap, and Zlatko Todorcevski, the judge found that ASIC did not make its case.