Alvin Chau announced from slammer yesterday that he is stepping downward as CEO of Suncity Group Holdings Limited, the Macau-focused gaming publicity troupe that made him a billionaire.
Chau is facing numerous felon charges in Macau and Wenzhou city regarding his alleged orchestrating of illegal cross-border play inwards Asia. Authorities inwards the Zhejiang Province struggle that Chau’s wealth has partly been derived from operating illicit online gambling casino operations and advertising gambling 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 late in conclusion nighttime with the Hong Kong Stock Exchange.
The society also alerted investors that Chau’s leaving presents weighty concerns for the group’s funding activities for its on-going casino-resort developments inwards the Philippines, Russia, and Vietnam.
“Shareholders and possible investors of the Company are advised to practice forethought when dealing inward the Shares,” the troupe declared. Suncity did not delimit when Chau mightiness officially tread down.
Dark Days for Suncity
Investors heeded the warning from Suncity past exiting the society and selling cancelled their shares in a mass exodus. Since Chau’s stop inward Macau, Suncity shares on the Hong Kong Stock Exchange get missed more than 48 percent of their value.
Chau has been in person lending Suncity often of its financing for its under-construction integrated resorts inward the Philippines’ Entertainment City and inwards Russia’s Far East. Suncity is edifice a $1 1000000000 cassino and resort complex called Westside City Resorts World inwards Manila, and continues to expand its Tigre de Cristal gambling casino inwards Russia’s Vladivostok.
With Chau soon departing the company that he founded in 2007 and served as its chief executive, the organization could be unforesightful on great to take on with its development endeavors.
“The Group is dependent on the financial supporting from Mr. Chau and his related to companies,” the Suncity securities filing added. “In the event that the Group losses the living of Mr. Chau for whatever reason, the financial position, business, and performance of the Group testament live adversely affected.”
Suncity Denies Wrongdoing
Another Florida key factor of the Suncity Group Holdings proclamation is that the keep company claims it has no ties to the allegations cladding Chau.
In Wenzhou, prosecutors say that Chau — through his fully-owned Sun City Gaming Promotion Company Limited (SCGPCL) — intermeshed inward placeholder betting. Proxy betting involves gamblers betting on unrecorded tabular array games remotely through and through nomadic devices. a proxy is seated inwards an genuine brick-and-mortar casino, and the risk taker tells that individual how to drama from a remote area. Such schemes are illegal inwards Macau and the Philippines.
Suncity Group says it has no controller or influence o'er SCGPCL, and thence has no effectual responsibility regarding the Wenzhou allegations.
“The Board is of the vista that, economise … the potency risk of exposure of loss of financial support of Mr. Chau, the Incident does non make any verbatim stuff untoward impact on the financial position, business, or surgery of the Group,” the accompany declared.