Tycoon could face long jail term over gambling charges

Macau tycoon Alvin Chau Cheok-wa could face up to 33 years in jail if convicted of all four counts of running an illegal gambling syndicate after police alleged he masterminded the criminal enterprise.

Chau's Suncity Group Holdings and Summit Ascent Holdings said the 47-year-old tycoon intends to resign.

Chau and 10 others were arrested by police on Saturday. Macau's Public Prosecutions Office said they are suspected to be involved in four offenses after initial investigation.

One of the offenses is being a member of a criminal syndicate, which carries a maximum jail term of 10 years. For being the leader, it's up to 12 years.

The members are also alleged to have committed money laundering, which carries up to eight years, as well as illegally running gambling operations that could draw three years.

The office said Chau and his gang are suspected to have used Macau as a base for an illegal "live web betting platform" in the Philippines that attracted mainlanders as its main source of customers betting on high-denomination illicit games.

The syndicate then used Macau-based company bank accounts to transfer the illegal earnings via underground banks.

Officers said that after the interrogation of the 11 suspects and considering the severity of the their alleged crimes, the court has followed the recommendation of the prosecutor by remanding five of the suspects, including Chau.

Measures such as providing information of identities and residence and barring them from departure have been imposed on the remaining six suspects. The investigation is still ongoing, the prosecution's office added.

Suncity Group Holdings, where Chau is a controlling shareholder, announced late on Monday that the tycoon has indicated his intention to resign as chairman of the board of directors and as an executive director, adding it will update shareholders and potential investors on developments.

Summit Ascent Holdings, a non-wholly owned subsidiary of Suncity Group Holdings, also said Chau has indicated his intention to resign as chairman of the board of directors and as a non-executive director.

"As a non-executive director, Mr Chau does not take part in carrying out day-to-day management and operations of the group," it said, referring to Summit Ascent Holdings and its subsidiaries.

Both Suncity and Summit Ascent addressed the allegation that a Russian resort, Tigre de Cristal, was involved in cross-border gambling activities by sending officers to solicit for customers in China for its gaming operations.

"Such allegation is untrue," their announcements read.

Shares of Suncity Group plunged 48.2 percent to 13 HK cents after it resumed trading yesterday on the Hong Kong stock exchange.

Summit Ascent slumped more than 63 percent. Other casino operators such as Sands, Galaxy and MGM China lost between 2.3 percent and 5 percent amid worries about a crackdown by mainland regulators on the gaming business.