Alleged fraudster moved $8 million of clients’ money through Crown casino

PHOTO: Michael Gu made a series of transfers to Crown casino. CREDIT: JAMES ALCOCK

Embattled gaming giant Crown Resorts has called an immediate inquiry into claims an alleged fugitive corporate fraudster laundered millions of dollars through its Melbourne casino.

Liquidators investigating the collapse of Michael Gu’s $600 million iProsperity property group found at least $8 million of clients’ funds were moved to Crown Casino via company accounts. Mr Gu then either withdrew the money or used it for gambling.

Crown’s decision to call an inquiry into the allegations came within hours of The Age and The Sydney Morning Herald sending questions to the casino operator about the suspicious transactions.

Sources familiar with the transactions said they had the hallmarks of money laundering, which involves a person trying to conceal the illicit origin of money that is stolen or earned via criminality. Passing dirty funds through a casino can make it appear as if they are the product of gambling, concealing their tainted origin.

Pressed on why Crown had not reported Mr Gu’s dealings with its Melbourne casino to the ongoing Victorian royal commission on the company’s suitability to hold a casino licence in the state, a spokesman said the matter would be addressed.

The scramble by Crown to deal with the allegations came after The Age and the Herald confirmed Mr Gu had repeatedly transferred large sums of money from the accounts of property group iProsperity to accounts at Crown.