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.
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 Michael Lee had called into question the Crown’s affidavit from a chief financial officer that the group “can’t afford to pay more than agreed”.
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.
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