James Packer admits threatening businessman over privatisation deal
A prominent Melbourne businessman sought urgent legal and security advice after receiving threats from casino tycoon James Packer that included references to a person connected to the Israeli intelligence agency Mossad.
The Age and The Sydney Morning Herald have confirmed the
high profile businessman was so concerned by the 2015 emailed threat that he
sought advice from leading Victorian QC Philip Dunn and criminal defence
solicitor Bill Doogue to document the allegations and discuss hiring private
security.
Sources aware of the conversations said those discussions
included spending tens of thousands of dollars on securing the man’s family
home. The Age and Sydney Morning Herald have chosen not to name the businessman,
a leading private equity executive, to respect the privacy of his family.
Sources aware of the alleged threats said they included
reference to a person connected to Israel's national intelligence agency,
Mossad, and their capacity to threaten the businessman.
The threatening emails were raised in the NSW Independent
Liquor and Gaming Commission's probity inquiry on Tuesday, but the details were
not made public. Mr Packer's lawyers asked that they be discussed in a private
session because of concerns about Mr Packer's state of mind at the time of
writing the messages.
However The Age and Sydney Morning Herald has confirmed
details of the emails and how seriously the recipient took them. This masthead
has attempted to contact the businessman involved over the past six months but
he has declined to discuss the matter.
Mr Packer told the inquiry on Tuesday it "came as a
surprise" to him that the businessman, whose name was withheld, might have
been put in fear by the threat. But under questioning he agreed the emails were
“shameful” and “disgraceful”.
The billionaire attributed his actions to mental illness and
bipolar disorder, which he is now being treated for. He also told the inquiry
his medication for the condition made it difficult to remember details from his
time as Crown's chairman and director.
The inquiry referred to the businessman involved only as “Mr
X”, who was a representative of "Z Co", a company with which Mr
Packer discussed privatising Crown in 2015. There was a proposal for Z Co to
put $1.5 billion into the privatisation, but the firm came back to Mr Packer
saying it could only provide $400 million.
The inquiry also heard how around that time Mr Packer was
planning to launch a cyber security business with Israeli businessman Arnon
Milchen - who formerly worked in weapons procurement - and another personal who
subsequently connected to Mossad.
Counsel assisting the inquiry Adam Bell asked Mr Packer, who
gave evidence via video link from his superyacht: "You accept you were
making a threat against Mr X in these emails?
Mr Packer replied, "Yes".
Mr Bell then put the question: “How can the NSW [gambling]
regulator have any confidence in your character and integrity in light of these
emails?” Mr Packer responded: "Because I was sick at the time".
However, Mr Packer said he could not recall if he disclosed
that fact to his then colleagues on the board of Crown. He said Crown's
shareholders should have been told that was the reason for his resignation in
December 2018.
The inquiry's line of questioning appears to be testing
whether Mr Packer should be allowed to be a "close associate" of
Crown on character grounds. If the inquiry says he cannot, then he may be
forced to sell down his stake in Crown from its current 36 per cent
shareholding to less than 10 per cent.
Over the past couple of months, the inquiry has been
examining various probity issues at the casino giant and will make a
recommendation to the NSW government on whether Crown should keep the licence
for its new casino at Barangaroo.
Mr Packer owns 36 per cent of Crown and was its chairman for
many years but has not had an official role with the company since he left its
board in 2018. However the inquiry has heard the billionaire has continued to
wield significant influence at the ASX-listed group.
This inquiry - which has the same powers as a royal
commission - was triggered by a series of reports last year by The Age, Herald
and 60 Minutes which revealed that Crown went into business with
"junket" tour figures linked to Asian organised crime groups, allowed
itself to be used to launder drug money, and put its staff at risk of arrest in
China.
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