Pubdate: Fri, 14 Jul 2000 Source: Sydney Morning Herald (Australia) Copyright: 2000 The Sydney Morning Herald Contact: GPO Box 3771, Sydney NSW 2001 Fax: +61-(0)2-9282 3492 Website: http://www.smh.com.au/ Forum: http://forums.fairfax.com.au/ Author: Neil Mercer CASINO 'COURTED KNOWN DRUG DEALERS' Claims of money laundering, prostitution and criminal activity at Star City casino will be aired publicly in hearings expected to start next month. The hearings come at a time when the Herald has learned that Star City and other casinos targeted gamblers from Cabramatta, knowing full well that a lot of their money came from the proceeds of drug sales. Mr Peter McClellan, QC, said yesterday he believed the time was right to publicly air some of the allegations. Until now, Mr McClellan has been conducting his investigation behind closed doors. Although he declined to be drawn on any details, his decision is a serious setback to Star City casino, which has consistently denied any wrongdoing or failure of management. Allegations of money laundering and loan sharking, including gamblers going into hiding in fear of their lives from loan sharks operating in the casino's high-roller room have dogged Star City for months. In addition, a former senior executive, Mr Mark Wells, and a former high roller, Mr Alexander Preston, who is suing the casino, have made allegations against casino management. In a confidential interview with investigators assisting Mr McClellan, Mr Wells has detailed how casinos sought out gamblers from Cabramatta as early as 1992 knowing full well that a lot of their money probably came from drugs. The Herald has also learnt that detectives from Crime Agencies are also investigating some of the matters and have been in touch with Mr McClellan. It is believed the police are particularly keen to talk to gamblers, including a doctor, who went into hiding owing a large amount of money to loan sharks. While loan sharking is not illegal, critics of Star City have asked how they were allowed to operate so openly when their presence clearly created a potentially unsafe environment for punters. When Mr McClellan announced his inquiry on June 17 he said he proposed to hold hearings in private. He said this would "enable the veracity of information to be examined to ensure that no person is improperly or inadvertently subjected to adverse publicity which may impinge upon their reputation". However, he did add: "If I form the view that public hearings will assist the investigation I will determine whether, notwithstanding the potential damage to individuals, it is nevertheless appropriate to conduct them." Mr McClellan has clearly decided that that time has come. - --- MAP posted-by: Richard Lake