Crown’s CEO Is Under Investigation for Reinstating Removed Patrons

Ciaran Carruthers, the chief executive officer of the Australian casino and hospitality leader Crown Resorts, is under investigation over allegations that he allowed removed patrons back into the company’s properties. The company’s board has launched an investigation to see if the allegations are correct.

As reported by The Australian Financial Review, Carruthers is suspected of intervening to reinstate patrons removed by security. On one occasion, the CEO allegedly reinstated a patron who was banned for a year for bringing a minor into the gaming area. Another report claims that Carruthers allowed an intoxicated patron to remain in the casino.

A Crown spokesperson told The Australian Financial Review that the company has engaged external counsel to conduct an independent review of the matter. They said that further comment cannot be provided before the review is complete.

Sources told the Australian news outlet that the investigation is being conducted by a law firm. They also explained that regulators and state-appointed special managers were familiar with the investigation.

The Australian Financial Review also reported that Victoria’s casino regulator, the Victorian Gambling and Casino Control Commission (VGCCC) has launched a separate investigation into Crown’s business and Carruthers’ alleged misconduct.

A spokesperson for the authority said:

The VGCCC is aware of an internal matter involving Crown and are actively investigating. We are not in a position to provide further comment at this time.

VGCCC statement

Carruthers Was Appointed by Blackstone

Carruthers was appointed as CEO in the wake of Crown’s acquisition by Blackstone. An experienced casino executive, Carruthers was among several executive-level appointments initiated by Blackstone.

Crown’s acquisition by the US equity firm was facilitated by the former company’s precarious business position in the aftermath of severe regulatory scrutiny. Crown was accused of multiple regulatory failings and shady dealings with high-rollers. As a result, it had a special manager appointed to oversee its remediation efforts.

The resulting executive departures are what prompted Blackstone to refresh Crown’s leadership team with multiple new faces.

In other news, a recent lawsuit suggests that Crown Resorts and its ex-shareholder James Packer did not pay AUD 260,000 to an abused security guard who sued them on a previous occasion. According to the earlier lawsuit, Packer and members of the management bullied the guard for not recognizing Packer and asking him to leave.