Alvin Chau announced from slammer yesterday that he is stepping downward as CEO of Suncity Group Holdings Limited, the Macau-focused gaming advancement fellowship that made him a billionaire.
Chau is facing legion(p) malefactor charges inward Macau and Wenzhou city regarding his alleged orchestrating of illegal cross-border gaming in Asia. Authorities inwards the Zhejiang Province contend that Chau’s wealth has partially been derived from operating illicit online cassino operations and advertising gambling unlawfully to Chinese people on the mainland.
As informed by Mr. Chau, he has indicated his intention to resign from the posts of the chairman of the Board and an executive director Director of the Company,” Suncity informed investors through a securities filing made later(a) in conclusion night with the Hong Kong Stock Exchange.
The keep company also alerted investors that Chau’s going away presents heavy concerns for the group’s funding activities for its on-going casino-resort developments in the Philippines, Russia, and Vietnam.
“Shareholders and possible investors of the Company are advised to physical exercise forethought when dealing in the Shares,” the companion declared. Suncity did not delimit when Chau power officially stone's throw down.
Dark Days for Suncity
Investors heeded the warning from Suncity past exiting the keep company and selling off their shares in a mass exodus. Since Chau’s stop inwards Macau, Suncity shares on the Hong Kong Stock Exchange have missed more than 48 percent of their value.
Chau has been personally loaning Suncity practically of its funding for its under-construction structured resorts in the Philippines’ Entertainment City and inward Russia’s Far East. Suncity is edifice a $1 1000000000 cassino and resort hotel complex called Westside City Resorts World inwards Manila, and continues to expand its Tigre de Cristal cassino inward Russia’s Vladivostok.
With Chau soon departing the accompany that he founded inward 2007 and has served as its chief executive director since, the system could live unawares on uppercase to carry on with its development endeavors.
“The Group is hooked on the financial reenforcement from Mr. Chau and his related companies,” the Suncity securities filing added. “In the case that the Group losses the financial backing of Mr. Chau for whatever reason, the financial position, business, and procedure of the Group will be adversely affected.”
Suncity Denies Wrongdoing
Another paint ingredient of the Suncity Group Holdings declaration is that the company claims it has no ties to the allegations facing Chau.
In Wenzhou, prosecutors allege that Chau — through and through his fully owned Sun City Gaming Promotion Company Limited (SCGPCL) — occupied inward placeholder betting. Proxy betting involves gamblers betting on unrecorded tabulate games remotely through nomadic devices. group A proxy is seated in an real brick-and-mortar casino, and the gambler tells that individual how to caper from a remote area. Such schemes are illegal inwards Macau and the Philippines.
Suncity Group says it has no check or influence o'er SCGPCL, and so has no effectual responsibility regarding the Wenzhou allegations.
The Board is of the sight that, make unnecessary … the possible danger of red of financial support of Mr. Chau, the Incident does non feature any direct material adverse wallop on the financial position, business, or military operation of the Group,” the companionship declared.