Wynn Las Vegas has agreed to pay “the largest criminal penalty in the history of the Department of Justice for a casino,” according to a former federal prosecutor who led the investigation.
Paying the Piper
The Wynn Las Vegas made history last week, but not in the way they would like to be remembered.
“The criminal penalty paid by Wynn is the largest criminal penalty in the history of the Department of Justice for a casino. The criminal conduct involved third-party businesses, agents, and related entities in the United States, Latin America, and Asia,” according to a statement by Daniel Silva, the former federal prosecutor who led the investigation while at the U.S. attorney’s office.
The Las Vegas-based gaming company signed an eight-page non-prosecution agreement late last week to avoid a criminal trial and agreed to pay the staggering sum of $130 million in two installments. Wynn Las Vegas also agreed to follow a set of stipulated guidelines spelled out by the federal government over the next two years. The company also verified in the documents that it “no longer employs or is affiliated with the individuals.”
Employees at the Wynn, with the approval of their superiors and high-ranking executives, moved money from local banks into players’ casino accounts, but those funds originated from unlicensed money-transmitting businesses.
“Through the use of these money-transmitting businesses, gamblers at Wynn (and Wynn itself) were able to evade foreign and U.S. laws governing monetary transfer and reporting,” said Silva. “These transfers were extremely sophisticated, allowing for international underground banking transfers that concealed the true ownership, nature, and source of the funds, which is contrary to the transparency intended by America’s anti-money laundering legal regime — known as the ‘Bank Secrecy Act.’”
Wynn’s New Chapter
Wynn is said to be moving on after this most recent settlement with the U.S. government and also settled a class-action lawsuit concerning sexual misconduct allegations filed on September 5, 2023, by nine unnamed women against the company’s founder, Steve Wynn.
“Wynn Resorts is committed to acting with the highest integrity and in full compliance with all laws and regulations governing our industry,” said a spokesperson on behalf of the company. “The actions of these individuals, for which Wynn has accepted responsibility, date back many years and violated Wynn’s compliance policies and procedures.”
In July 2023, Wynn agreed to a $10 million fine and terminated proceedings with the Nevada Gaming Commission while also cutting ties with the company he founded. This followed Wynn Resorts agreeing to $20 million in damages from Steve Wynn in 2019 as well as $21 million more from its insurance carriers to settle shareholder lawsuits accusing company directors of failing to disclose misconduct allegations.
“Beginning in 2018, we took decisive action to transform our workplace environment and governance and begin a new chapter for Wynn,” said the company. “These settlements are the final milestone in that process, as we put legacy issues fully behind us and focus on our future.”
