Login
$450m Crown penalty gets green light with major condition
The Federal Court has approved the $450 million penalty agreed between the Crown casino group and the financial watchdog -– but with one provision that could open them back up to court action.
Naomi Neilson
On day two of proceedings to get the court’s approval for the penalty, Crown’s counsel Philip Crutchfield urged Justice Michael Lee to green-light the value and the instalment plan reached with AUSTRAC despite how much “discomfort” it may bring him.
Justice Lee floated the idea of having someone like an amicus, or “friend of the court”, look into the finances and determine whether the chief financial officer should be cross-examined.
“I’m presently troubled about that point. It seems to me, like any significant issues in litigation, it is best supported … through cross-examination or further inquiry,” Justice Lee said.
He added while the $450 million penalty may be within the permissible range, it is at the “lower end” and could fall below that range if it is to be paid out in the way that was proposed.
“The court needs to give some scrutiny to these things.
“Isn’t it appropriate in the administration of justice that we get to the bottom of whether I should accept this?” Justice Lee said.
Mr Crutchfield said the court has subjected the agreement to a “rigorous inquiry” and there was sufficient evidence to determine the penalty would be sufficient, including material that suggests Crown has suffered an “enormous loss” already.
“A fine north of $450 million is going to constitute a swing.
“We would urge Your Honour that the $405 million, that being the net present value, is not outside the appropriate range. It may give Your Honour some discomfort, but we would urge Your Honour not to reject that figure,” Mr Crutchfield said.
In responding to the debate about whether the Crown group would experience some financial hardship, Mr Crutchfield said he is “being subjected to the cauldron of Your Honour’s court”.
“It’s not really a cauldron if no one is being cross-examined. It’s more like a tepid bath,” Justice Lee shot back.
In a judgment handed down on Tuesday afternoon (11 July), Justice Lee gave the green light by ordering that the Crown pay the $450 million in instalments, with the first $125 million due within 28 days.
Another $125 million should be paid within the year, and the remaining $200 million was ordered to be paid in the next two years.
There will also be no interest on the payments.
Justice Lee included a provision that would allow AUSTRAC to make a future court application if the financial position changed.
If the Crown failed to comply with the payments, it would be required to hand over the entire sum immediately with interest.
Naomi Neilson
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
You can email Naomi at:
