Key Crown Resorts executives are resigning after a landmark ruling
Several directors have resigned from Crown Resorts' board of directors after a decision declaring the operator inappropriate for a Sydney, New South Wales gaming license.
It was reported on February 9 that an 18-month investigation revealed that the Australian casino operator was unsuitable for running the Sydney Barangaroo casino after evidence was found that its facilities and accounts were used for money laundering.
The investigation, led by former Supreme Court judge Patricia Bergin, also found that the operator was involved in the activities of garbage operators who had alleged ties to organized crime and now questions the operator's ability to open an already-built 2.2 billion casino AU $ ($ 1.7 billion) unless major reforms are made.
And now, Crown Resorts directors Guy Jalland and Michael Johnston have announced their resignation from their board of directors.
Both Jalland and Johnston are key officials at James Packer's Consolidated Press Holdings (CPH), the majority owner of Crown Resorts.
In her ruling, Judge Bergin concluded that Johnston's varied roles exposed him to being "riddled with conflict" and doubted that Crown Resorts could be "transformed into the right person," while Johnston and others remained as directors.
In addition, non-executive director John Poynton is no longer a candidate for CPH on the board of directors of the Crown Board following the termination of his advisory contract with CPH, meaning that CPH is no longer separately represented on the board of the operator.