Australian liquidators are preparing to sue Crown Resorts and Star Entertainment for approximately US$45 million in connection with fugitive fraudster Michael Gu's missing millions.

Gu, who vanished in 2020, defrauded investors in his iProsperity Group of around US$245 million through one of Australia's largest Ponzi schemes. The company was heavily involved in Australia's significant investor visa (SIV) program, which offers residency to foreign nationals who invest AU$5 million in domestic businesses.

According to court filings, Gu misappropriated over half of the company's US$380 million funding on gambling, luxury vehicles, and personal expenses. His purchases included multiple high-end cars, expensive wines, and private jet travel.

The lawsuit focuses on approximately US$45 million traced to accounts at Crown Resorts and Star Entertainment. Evidence shows Gu lost US$3.6 million gambling at Star Sydney, while his associate Harry Huang deposited US$9.2 million, including US$960,000 after iProsperity's collapse.

A 2022 regulatory inquiry revealed that Star Sydney's senior VP of high roller operations, Mark Walker, maintained an undisclosed relationship with Gu. In 2018, Gu offered Walker a US$412,000 position at Casino Canberra during a failed acquisition attempt.

Liquidators have spent four years investigating 64 companies connected to Gu and have traced US$112 million of the missing funds. A Victoria federal court has approved funding for the lawsuit against the casino operators and other parties involved. Gu's current location remains unknown.

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