Wynn Resorts Ltd., a prominent casino company, has reached a settlement with federal authorities to pay $130 million and acknowledge allowing unlicensed money transfer businesses worldwide to channel funds to gamblers at its main Las Vegas Strip property. The arrangement, termed a non-prosecution settlement, was labeled by the U.S. Justice Department as the sum involved in the transactions at the Wynn Las Vegas resort.
The publicly traded company clarified that the $130 million isn’t a fine but rather represents funds related to the identified transactions, averting any assertion of money laundering. This resolution comes after a ten-year investigation.
U.S. Attorney Tara McGrath highlighted that the settlement highlights the accountability casinos bear for enabling foreign clients to bypass U.S. laws. The $130 million payment is noted as the largest forfeiture by a casino acknowledging criminal wrongdoing.
The company disclosed that it has cut ties with all individuals and entities connected to what the government characterized as intricate overseas transactions. Former employees were implicated in facilitating the illicit use of unlicensed money transmitting businesses, which contravened internal policies and the law.
Various methods were detailed by the Justice Department, citing instances like “Flying Money,” where an unlicensed money agent employed multiple foreign bank accounts to transfer funds to the casino. Another method involved a person known as “Human Head” gambling at the casino on behalf of another individual who couldn’t place bets themselves due to legal restrictions.
Wynn Resorts termed the settlement as the culmination of a six-year effort to resolve past issues and concentrate on the future. The company distanced itself from former CEO Steve Wynn, who departed amidst sexual misconduct allegations. Wynn has since denied any wrongdoing and has severed all ties with the company.
Wynn Resorts has been entangled in legal battles following Steve Wynn’s departure, with fines from regulators in Nevada and Massachusetts for failing to address sexual misconduct claims against him. As part of the settlement with the Justice Department, 15 individuals previously admitted to crimes like money laundering and unlicensed money transmission, paying over $7.5 million in penalties.
Wynn Resorts clarified that the non-prosecution agreement with the government did not implicate money laundering.
