ClubsNSW Accused for Money Laundering by Former EmployeeMay 4, 2020 John Isaac
Australian company ClubsNSW sues a former employee for revealing the facts about money laundering in some of the clubs in Australia as one of the biggest trading companies in the Australian gambling ecosystem. Earlier this year, Troy Stolz whispered about the clubs’ widespread practice of violating existing laws on anti-money laundering which caused the organization and its members’ great grief. ClubsNSW is now trying to keep Stolz accountable for being a responsible citizen by alleging that, in breach of a non-disclosure agreement, he passed on internal information to government officials.
ClubsNSW serves around 1,200 gaming clubs. It accuses Stolz of handing over to Andrew Wilkie, a parliamentary delegate on the internal ClubsNSW Board paper, who then made a speech before Parliament on the massive amount of money laundering in the gambling industry. He claimed that 95% of the industry was guilty of not complying with the rules using the document Stolz gave him. The document reveals that most of the 770 clubs under the supervision of ClubsNSW ignore their duties on current anti-money-laundering and counter-terrorism legislation.
Former Employee Says AUSTRAC Previously Has Been Notified of Possible Irregularities
This document was allegedly created in May last year by an executive with the organization. After Stolz took it, it came not only to the lawmaker but also to many news outlets. It gave instructions about how customers should go to play facilities with large sums of cash and were not afraid that they lost up to 30% quickly. According to Stolz, the Australian Transaction and Analysis Centre (AUSTRAC) had previously been notified of possible irregularities.
“It’s disappointing that ClubsNSW feels the need to sue me for bringing the spotlight on what is a very serious issue of great public concern. I think the substantial amount of money that ClubsNSW would be paying its lawyers would be better used assisting those clubs who are in dire need, rather than to intimidate and bully a whistleblower”– stated him.
ClubsNSW Believes Former Employee Leaked Internal Documents
ClubsNSW only considers that Stolz is accountable for leaking the internal document by means of reprisal action against the whistleblower and by examples of his alleged bad attitude. It seeks protection under the Australian Companies Act, which also covers whistleblowers by chance. Common sense says that a whistling person can not be taken seriously only by the provision of information within himself and the Companies Act says that he is free (except where the disclosure was false) of “criminal prosecution” and of “civil litigation”. The case tends to show how dishonest the management of the company is, as it is able to allocate time and resources to frivolous litigation rather than try to avoid its members’ continued organizational decreases.
Up until now, ClubsNSW was considered as a company with a great reputation. It was established in 1926 and ever since, as previously mentioned, it serves around 1,200 gaming clubs all around Australia. The company is headquartered in Sydney and in addition to gambling-industry legalization relating to gambling, it also executes media and PR communications, financial services, training, etc.