Following the arrest of Macau Legend Development’s former Chief Executive Officer as part of a continuing investigation into junket operations in Macau, the company’s stock has plummeted to a new low.
After the operator said Chan Weng Lin had been arrested by authorities and resigned as CEO, the company’s stock plunged 19%. Authorities in Macau announced on Sunday that two individuals had been arrested on suspicion of unlawful gambling and money laundering. Chan is the largest stakeholder in Macau Legend and the chairman of Tak Chun Group, Macau’s second-largest junket operator.
“The board of directors of Macau Legend Development Limited announces that Mr Chan Weng Lin has tendered his resignation as an executive director, co-chairman of the Board, and chief executive officer of the Company with effect from 31 January 2022 so as to avoid distraction to the company and for the interest of the company’s shareholders as a whole,” said David Chow Kam Fai, Chairman and Non-executive Director of Macau Legend Development Limited.
“Mr Chan has confirmed that he has no disagreement with the Board and there are no matters relating to his resignation that need to be brought to the attention of the shareholders of the Company; and (ii) he has no claim whatsoever against the Group, whether by way of compensation, remuneration, severance payments, expenses or otherwise. The Board would like to take this opportunity to express its gratitude and appreciation to Mr Chan for his contributions to the Company during his tenure of services,” he added.
The authorities have detained 15 people so far as its crackdown on illegal online gambling launched in November, including Alvin Chau, founder of Macau’s biggest junket operator Suncity Group.