This is the third suspension of trading in the past two weeks for SunCity and its subsidiary Summit Ascent. SunCity was the largest operator of VIP junkets to Macau casinos, while Summit Ascent operates the Tigre de Cristal resort in Vladivostok, Russia. The suspension was made pending the release of an announcement in relation to a possible loan default by an associate of the controlling shareholder and possible enforcement of securities charges, which constitute inside information of the company.
The earlier suspensions have been linked to the arrest late last month of Alvin Chau, who was chair of both businesses until he stepped down last week. Chau was one of 11 people arrested under suspicion of running an illegal cross-border gambling business. The group is suspected of creating an illegal live-betting platform based in the Philippines and attracting customers from mainland China via a Macau-based junket. They are alleged to have used Macau-based bank accounts to transfer revenue from the operation.
The Macau Procurator General noted that the group is suspected of committing four crimes, with sentences ranging from 10 to 12 years imprisonment. In addition to Alvin Chau, two other Summit Ascent non-executive directors stepped down from the operator’s board. Wong Pak Ling Philip stepped down last week, while Dr. U Chio Ieong also announced his resignation this week.
Summit Ascent did not indicate that either event was linked to the Chau arrest and said that no further details of either resignation needed to be brought to the attention of Summit Ascent shareholders or the Hong Kong Stock Exchange.
Meanwhile, the Macau Bureau of Gaming Supervision (DICJ) announced that employees of SunCity VIP rooms at Macau casinos should not be affected by the junket operator’s decision to close these rooms in the wake of the scandal. The DICJ closed the rooms on 1 December but stated that employees should not be affected as they would work for the operators in question, which should be obliged to protect their employment rights.
