Alvin Chau steps down as CEO, Suncity shares tumble further

Alvin Chau has officially resigned from his executive positions at Suncity Group and Summit Ascent, following his arrest, which led to a major plunge of the companies’ market shares.
In a filing to the Hong Kong Stock Exchange, the statement noted,” “The Board announces that a letter was received from Mr. Chau, tendering his resignation from the posts of Chairman of the Board and Executive Director, effective from December 1, for the reason that his resignation would (in view of the pending legal proceedings against him) be in the best interests of the company, and also allow him to devote more time to personal matters.”
Suncity closed all its gaming-related operations on December 1.
It was then announced that the company would cease salary payments immediately for at least one-third of its staff, calculated to be about 3,000 people.
According to the filing, “further announcements will be made by the company in relation to the appointment of the chairman of the board, as and when appropriate.”
The Hong Kong-listed company’s shares fell as much as 20% following the resumption of trading.
On Wednesday, trading was suspended to avoid a further plunge in stocks, since the shares were last traded at HKD0.13 on Tuesday.
All six gaming operators have suspended their cooperation with Suncity and are temporarily suspending the operation of the promoter’s VIP rooms in their casinos from December 1, the Gaming Inspection and Coordination Bureau (DICJ) noted.
Chau has been detained and put in preventive custody by the judge overseeing the case.
He was transferred to Coloane Prison after a long interrogation by the Public Prosecutions Office (MP). The judge in charge of the prosecution and investigation on the case decided that he will await trial while under arrest.
Chau is suspected of leading a criminal organization running illegal gambling and money laundering, the Judiciary Police (PJ) announced on Sunday after the CEO of the VIP gaming promoter was detained for interrogation on Saturday.