In a recent development, Macau’s Court of Second Instance has revised the legal landscape for former Tak Chun Group chairman Levo Chan and four other defendants, after a lengthy trial concluded in April 2023. The court decision not only reduces Chan’s prison sentence by 12 months but also restructures the compensation framework, impacting the relationship between the accused and key concessionaires.
Reduced Prison Sentence:
The Court of Second Instance has opted to reduce Levo Chan’s prison sentence from the initial 14 years to 13 years. This adjustment comes as a result of partial success in the defendants’ appeals against the initial verdict, highlighting a nuanced legal interpretation of the charges against them.
Fraud Charges and Acquittal:
The court acquitted Chan and his co-defendants of fraud charges related to their involvement in “betting under the table.” The decision rested on the finding that the participants acted knowingly, and there was insufficient evidence to establish a case of fraud or a gambling scam. This marks a crucial turning point in the legal proceedings, reshaping the narrative surrounding the accused’s activities.
Triad Offenses and Money Laundering:
While the fraud charges were dismissed, Levo Chan remains convicted of triad offenses, illegal operation of gambling, and aggravated money laundering. The court’s stance on these charges emphasizes the severity of the non-fraudulent aspects of the defendants’ activities, leading to the adjusted 13-year prison sentence for Chan.
Compensation Structure:
The court’s decision significantly impacts the compensation structure initially outlined in the April 2023 verdict. Notably, the accused are no longer required to pay compensation to the five prominent concessionaires – Wynn Macau Ltd, Sands China, SJM Resorts, Galaxy Entertainment Group, and MGM China. However, a new directive mandates compensation to the Macau SAR Government, with the revised amount standing at approximately HK$2.5 billion (US$310 million).
Parallel with Suncity Group Chairman’s Case:
The current case draws parallels with the legal proceedings involving former Suncity Group Chairman Alvin Chau. In October, Chau witnessed the dropping of fraud charges but experienced a tripling of the compensation amount owed directly to the government, reaching an astounding HK$25 billion (US$3.2 billion). The similarity in outcomes prompts a closer examination of the legal strategies, trends, and precedents in high-profile gaming-related cases in Macau.
Industry Implications:
Beyond the individual cases, the court’s decisions have broader implications for the gaming industry in Macau. The altered compensation structure raises questions about the accountability of gaming operators and their interactions with the government. The industry stakeholders are likely to closely monitor the legal landscape for potential shifts in regulatory frameworks and compliance standards.
The recent decision by Macau’s Court of Second Instance signifies a significant juncture in the legal proceedings involving Levo Chan and co-defendants. The nuanced approach to fraud charges, the revised prison sentence, and the altered compensation structure underscore the complexity of legal interpretations in high-stakes gaming cases. As Macau continues to navigate such legal challenges, the industry’s future may see adaptations in regulations and compliance practices to ensure the integrity and transparency of gaming operations within the region.