Crown Resorts Clears CEO Ciaran Carruthers of Wrongdoing After Internal Investigation
Following allegations that Crown Resorts Chief Executive Ciaran Carruthers allowed patrons to re-enter the Melbourne casino after being removed by security, an internal investigation has found that he did not break any regulations or laws, as reported by the Australian Financial Review (AFR). Bill McBeath, president of Crown Resorts, stated in a memo to employees that the investigation revealed that no laws or regulations were breached. However, the Board has initiated a broader review of the company’s security procedures and policies.
The allegations being investigated are related to incidents that took place at Crown’s Melbourne casino in 2023, including one in which Carruthers reportedly intervened to allow a patron who had been banned for one year and removed for bringing a minor to re-enter the casino. The firm has employed two law firms to conduct the investigation into the allegations.
Carruthers, who was brought in by Blackstone following its purchase of the firm, has the full support of the Crown board of directors. The Victorian Gambling and Casino Control Commission (VGCCC) has expressed satisfaction with the recommendations resulting from Crown’s internal investigation. However, the regulator is still evaluating the suitability of Crown to manage a casino in Melbourne, with a decision expected in April 2024.
The internal inquiry by Crown follows a period of careful examination by the regulator and a Royal Commission in Victoria, which led to the appointment of a designated manager to control the management of the casino.
The publication of the findings regarding Carruthers, along with separate investigations in Western Australia and NSW, led to the formal departure of Crown’s management and Board. These internal issues prompted the formal leave of the Crown’s management and Board. The VGCCC has stated that its investigation should not be taken as a pre-judgment about its pending decision.
Overall, the internal investigation by Crown has cleared its CEO of any legal wrongdoing, but the company continues to face scrutiny from regulators and shareholders.