Crown Resorts and Star Entertainment face a potential US$45 million lawsuit from liquidators pursuing funds linked to fugitive fraudster Michael Gu, who disappeared in 2020 owing investors approximately US$245 million.

Gu's iProsperity Group, which operated within Australia's significant investor visa (SIV) program, was exposed as one of the country's largest Ponzi schemes. The company raised roughly US$380 million, with Gu allegedly spending over half on gambling, luxury vehicles, and personal expenses.

Investigation findings reveal Gu's extravagant spending included:

• Multiple luxury vehicles (Lamborghinis, Rolls Royce, Ferrari, McLaren)
• $3,000 wine bottles
• Private jet travel
• Extensive gambling at Star Sydney and Crown Melbourne

Liquidators have traced US$112 million through a complex network of 64 companies, with approximately US$45 million connected to the two casino operators. Notable gambling activities include:

• Gu's US$3.6 million losses at Star Sydney from 2017
• Harry Huang's (Gu's associate) US$9.2 million deposits

A 2022 regulatory inquiry highlighted Star Sydney's compliance failures and revealed an undisclosed relationship between Gu and Mark Walker, the casino's senior VP of high-roller operations. Gu had offered Walker a US$412,000 position at Casino Canberra during a failed acquisition attempt.

A Victoria federal court has approved funding for the lawsuit against both casino operators and other parties connected to Gu, whose current location remains unknown.

Related Articles

Previous Articles