Lawsuit Claims, to Avoid Detection of Illegal Chinese VIP Ops, Crown Resorts Created Code

Rare positive news for James Packer is that bid for Crown Resorts is $6.2 billion, bid by Blackstone.

The bad news of Crown Resort is not over yet. Recent news is not delightful for Crown Resort. According to the recent news, the Chinese operation of the company was busted by China authorities in 2017. As a result, in gambling crimes, 19 crown members have been arrested.

The suitability hearing of New South Wales decided that the company is not doing up to the mark and is unfit to hold a casino license. It agreed with the assessment done in Sydney.

Obvious Risk for Crown

Shareholders lawyers in the Australian Federal court filed a new allegation. According to the allegation, the risk was incorporated with Chinese Ops, and the behavior of Crown was like they were aware of it.

According to the filing statement, to hide the actual nature of Crown’s business, code words are used by the employees in China when they (Crowns employees) communicate with each other.

There is another allegation bought in the filing that Chinese aviation authorities are misled by the Crown. China permits the Crown to use their private jets because Crowns told that it would be used as the Crown executives transport to attend and return from the meeting in China. But in actual it was used as the transport of VIP gamblers of China to move from Crown Melbourne to Crown Perth.

The crackdown announcement on cross-border gambling made by China authority in February 2015, and after three days of the announcement, all fleet of jets are removed by the company.

In Guangzhou in China, a clandestine and unofficial office was established by the Crown, this is another allegation against the Crown. This office was used to process visa applications by the crown staff as it was their administrative function.

Internal Investigation Impeded

At the NSW suitability hearing, it was admitted by Crown executives that an internal review on the issue of China arrests had not been conducted by them. Because it may weaken the case against shareholders said by the executives.