{"id":88496,"date":"2024-12-16T22:59:16","date_gmt":"2024-12-16T22:59:16","guid":{"rendered":"https:\/\/neclink.com\/index.php\/2024\/12\/16\/crown-resorts-star-entertainment-sued-for-fraudsters-missing-millions\/"},"modified":"2024-12-16T22:59:16","modified_gmt":"2024-12-16T22:59:16","slug":"crown-resorts-star-entertainment-sued-for-fraudsters-missing-millions","status":"publish","type":"post","link":"https:\/\/neclink.com\/index.php\/2024\/12\/16\/crown-resorts-star-entertainment-sued-for-fraudsters-missing-millions\/","title":{"rendered":"Crown Resorts, Star Entertainment Sued for Fraudster’s Missing Millions"},"content":{"rendered":"


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\n Posted on: December 16, 2024, 04:40h.\u00a0\n <\/p>\n

\n Last updated on: December 16, 2024, 04:41h.\n <\/p>\n

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Liquidators chasing the ill-gotten gains of fugitive corporate fraudster Michael Gu<\/a> are preparing to sue Australian casino operators Crown Resorts and Star Entertainment for up to US$45 million, The Sydney Morning Herald<\/em> reports.<\/p>\n

\"Michael
Fugitive Michael Gu, above, used investors\u2019 money to splurge on a Rolls Royce Wraith, a Ferrari GTB, an Audi Q7, and a McLaren Spider, while gambling heavily at the Star Sydney and Crown Melbourne. Liquidators are seeking to recover the missing millions via civil lawsuits. (Image: Canberra Times)<\/figcaption><\/figure>\n

Gu claimed to be a high-flying, high-end property developer until he disappeared in 2020, owing investors in his iProsperity Group around US$245 million.<\/p>\n

iProsperity was a major player in Australia\u2019s significant investor visa initiative (SIV) \u2013 a government program that offers residency visas to foreign nationals prepared to invest AU$5 million in domestic businesses. It also turned out to be one of Australia\u2019s biggest Ponzi schemes.<\/p>\n

Massive Fraud<\/strong><\/h2>\n

Gu blew more than half of the roughly US$380 million the company raised in funding on gambling sprees, luxury cars, and expensive personal loans, according to the SMH.<\/em><\/p>\n

Gu bought two Lamborghinis, a\u00a0Rolls Royce Wraith, a Ferrari GTB, an Audi Q7, and a McLaren Spider. He drank $3,000 bottles of wine and traveled by private jet, per court filings.<\/p>\n

In the lead up to the company\u2019s collapse, Gu and his right-hand man, Harry Huang, gambled millions of dollars<\/a> at the Star Sydney and Crown Melbourne, which the lawsuit will suggest was the hallmark of money laundering.<\/p>\n

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Since iProsperity\u2019s collapse, liquidators have spent four years examining a byzantine network of 64 companies linked to Gu in search of the money.<\/p>\n<\/div>\n

While much remains missing, they have traced around US$112 million, which they are attempting to claw back through civil litigation. Around US$45 million is linked to accounts at the two casino operators.<\/p>\n

Gu\u2019s name featured prominently in a 2022 public regulatory inquiry into the Star Sydney\u2019s licensing suitability. The inquiry ultimately found the operator to\u00a0be noncompliant with anti-money laundering regulations and unfit to hold a license amid evidence of widespread fraud.<\/p>\n

The inquiry heard that Gu lost US$3.6 million gambling at the Star Sydney from 2017 onwards, while Huang deposited a total of US$9.2 million \u2014 US$960,000 after iProsperity collapsed.<\/p>\n

\u2018Secret Relationship\u2019<\/strong><\/h2>\n

Meanwhile, the casino\u2019s senior vice president of high roller operations, Mark Walker, \u201cmaintained a secret and longstanding relationship\u201d with the fraudster, according to filings.<\/p>\n

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In 2018, Gu even offered Walker a US$412,000 job running the Casino Canberra, after Gu attempted to buy a controlling stake in the business for a $32 million from the Hong Kong billionaire, Tony Fung. The deal ultimately failed to pass regulatory muster.<\/p>\n<\/div>\n

On Friday, a federal court in the state of Victoria approved a funding proposal for the lawsuit to retrieve money linked to Gu from the two casino operators, as well as from other individuals and companies connected to the fraudster.<\/p>\n

Gu\u2019s whereabouts remain unknown.<\/p>\n<\/div>\n


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