Macau Legend Development Limited has indicated that an independent consultant did not find ‘any irregularity’ in the business dealings between the gaming company and its former CEO, the now detained Levo Chan Weng Lin.
The head of junket Tak Chun had replaced Melinda Chan as Macau Legend’s CEO in December, 2020 after gradually increasing his personal stake in the gaming company.
However, in January of this year, he was detained by the Macau Judiciary Police (PJ) on suspicion of “illicit gambling activities”, establishing a criminal syndicate and money laundering.
He then resigned from all his positions in the company, including as co-chairman and executive director, with Melinda re-appointed as CEO.
Shortly after the company’s board established a special committee which then appointed an independent consultant in March to conduct a ‘specific and limited review’ with a view to identifying and assessing the impact that ‘incident’ may have on the company.
According to a company Hong Kong Stock Exchange dispatch – signed by founder and still Co-chairman and Non-Executive Director, David Chow Kam Fai – while there were ‘recurring and non-recurring business dealings’ between Macau Legend and Levo Chan, a ‘controlling shareholder of the company and his related companies, the independent consultant did not ‘note any irregularity in these dealings’.
‘The Special Committee is of the view, and the Board concurs, that the incident has no significant impact and does not affect the business operations of the
company,’ the dispatch concluded.
Macau Legend Development owns the Macau Fisherman’s Wharf property and operates Babylon and Legend Palace casinos under SJM’s gaming concession.
Melinda Chan has previously commented that the gaming company would still attempt to become a gaming concessionaire after the planned public tender this year.
On January 30, the Macau PJ announced in a press conference that they had arrested two men involved in junket operations on suspicion of illicit gambling activities formation of a criminal syndicate and money laundering.
The men were later revealed to be Levo Chan, chairman and executive director of Tak Chun – one of the city’s top junket operators – and CEO of gaming company Macau Legend Development, and Choi Wai Chan, chairman of Hong Kong-listed travel agency Ying Hai Group Holdings, who is known for his close business ties with Tak Chun.
Police also indicated that the arrests were related to the case, in which Alvin Chau Cheok Wa — the boss of the now dissolved junket operator Suncity Group — and 10 other suspects were arrested in late November for similar alleged crimes.
Macau Legend has suspended trading on the Hong Kong Stock exchange since April 1 due to delays in completing its 2021 annual results report on time.
