18 years in jail for junket king

James Lee

Macau gambling tycoon Alvin Chau Cheok-wa has been sentenced to 18 years in jail after he was found guilty on 162 charges, including enabling and operating illegal gaming.

Suncity Group's 48-year-old founder spearheaded the junket industry that attracted high rollers from the mainland to Macau, the only region in the country where casinos are permitted.

A Macau court yesterday found Chau guilty, months after he denied all wrongdoing. The trial began in September when prosecutors charged him with 289 counts of fraud, money laundering and illegal gambling.

Junket operators such as Suncity are licensed by the government to facilitate the casinos by guaranteeing some revenue for China's wealthy gamblers and securing a commission from casinos in return.

Judge Lou Ieng Ha found Chau guilty of more than 50 counts of fraud, a single count of running a criminal syndicate, and more than 100 counts of operating illegal gambling, but cleared him of money laundering.

Earlier, Chau told the court he had never gambled and did not know the rules.

The trial focused on side bets that were placed over an eight-year period from 2013 to 2021 totaling HK$824 billion, which defrauded the Macau government of more than HK$1 billion in tax revenue.

Tax revenue from casinos account for more than 80 percent of government income.

Chau has been ordered to pay the Macau government more than HK$6.5 billion as well as HK$2.1 billion to casino operators, a Macau broadcaster reported.

He must pay HK$349 million to MGM China, HK$770 million to Wynn Macau, HK$295 million to Sands China, HK$559 million to Galaxy Entertainment and HK$178 million to SJM Holdings.

Chau, who was charged alongside 20 codefendants, was also accused of facilitating proxy betting for Chinese customers to gamble remotely from casinos in Southeast Asia.

Chau said last month that in more than 10 years of running VIP junket rooms at casinos all around the world, his business had never encountered legal issues.

"I don't know why Suncity is considered a criminal syndicate," he said.

"Until today, my coworkers have not seen a cent of criminal proceeds. We have never given extra remuneration for unlawful behavior."

Chau first ran into legal trouble in November 2021 when officials in Wenzhou issued a warrant for his arrest for allegedly running an illegal gambling syndicate.

Days after Macau authorities arrested Chau and other senior company executives and charged them locally, Suncity shut down its operations, with a handful of casino operators following suit.

And just weeks after the arrests, developer and casino operator Melco Resorts filed a writ in the Hong Kong High Court demanding Chow's former mistress and model Mandy Lieu hand over a Mid-Levels flat that she mortgaged to Melco, which is now estimated to be worth more than HK$120 million.

Melco sought to secure repayment of the mortgage that Lieu took out on November 4, 2021.

Lieu purchased the 2,123-square-foot flat on the 38th floor of Argenta, 63 Seymour Road, for HK$91 million in 2014, public records from Centaline Property show. It is understood that Lieu, who separated from Chau in 2019, now resides in the United Kingdom with three daughters and one son she had with Chau.

cjames.lee@singtaonewscorp.com