Alvin Chau announced from slammer yesterday that he is stepping downwardly as CEO of Suncity Group Holdings Limited, the Macau-focused gaming promotional material accompany that made him a billionaire.
Chau is facing legion(p) crook charges in Macau and Wenzhou metropolis regarding his alleged orchestrating of illegal cross-border play inward Asia. Authorities inwards the Zhejiang Province struggle that Chau’s wealthiness has partly been derived from operating illicit online casino operations and publicizing play unlawfully to Chinese people on the mainland.
As informed by Mr. Chau, he has indicated his intention to submit from the posts of the chairman of the Board and an executive Director of the Company,” Suncity informed investors through and through a securities filing made later(a) cobbler's last nighttime with the Hong Kong Stock Exchange.
The companionship also alerted investors that Chau’s going away presents grievous concerns for the group’s funding activities for its on-going casino-resort developments inwards the Philippines, Russia, and Vietnam.
“Shareholders and potential investors of the Company are advised to workout precaution when dealing inward the Shares,” the keep company declared. Suncity did not define when Chau mightiness officially tread down.
Dark Days for Suncity
Investors heeded the warning from Suncity by exiting the keep company and merchandising cancelled their shares inward a mass exodus. Since Chau’s stoppage inward Macau, Suncity shares on the Hong Kong Stock Exchange experience missed to a greater extent than 48 percent of their value.
Chau has been in person loaning Suncity often of its financing for its under-construction structured resorts inwards the Philippines’ Entertainment City and inwards Russia’s Far East. Suncity is edifice a $1 1000000000000 casino and holiday resort composite called Westside City Resorts World inwards Manila, and continues to spread out its Tigre de Cristal cassino inward Russia’s Vladivostok.
With Chau presently departing the troupe that he founded in 2007 and served as its chief executive, the organization could be short on working capital to run on with its evolution endeavors.
“The Group is drug-addicted on the financial living from Mr. Chau and his related to companies,” the Suncity securities filing added. “In the case that the Group losses the backing of Mr. Chau for whatever reason, the financial position, business, and performance of the Group will live adversely affected.”
Suncity Denies Wrongdoing
Another key constituent of the Suncity Group Holdings declaration is that the troupe 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 in placeholder betting. Proxy betting involves gamblers betting on unrecorded table games remotely through and through mobile devices. group A proxy is sitting in an factual brick-and-mortar casino, and the risk taker tells that single how to run from a remote area. Such schemes are illegal in Macau and the Philippines.
Suncity Group says it has no more moderate or work over SCGPCL, and thus has no legal responsibleness regarding the Wenzhou allegations.
“The Board is of the look at that, lay aside … the potentiality risk of loss of financial reinforcement of Mr. Chau, the Incident does non have got any direct material contrary wallop on the financial position, business, or surgery of the Group,” the keep company declared.