Wynn Resorts Agrees to Forfeit $130 Million to Settle Criminal Allegations

Las Vegas subsidiary has reached a significant settlement agreement with the U.S. government. As part of this agreement, Wynn Las Vegas (WLV) will forfeit over $130 million following allegations of conspiring with unlicensed money-transmitting businesses to move funds for its benefit while sidestepping both U.S. and foreign regulations. The settlement, which is part of a Non-Prosecution Agreement (NPA), highlights the severity of the charges, making it one of the largest forfeitures ever by a casino for itted criminal activity.

Allegations Against Wynn Las Vegas

The U.S. Attorney’s Office for the Southern District of California (USAO) confirmed in a statement that WLV itted to using uned businesses to by the conventional financial system. These actions allowed the casino to receive and transfer large sums of money while avoiding regulatory oversight designed to prevent illegal funds from entering legitimate businesses. According to the USAO, this settlement marks a significant moment in the casino industry, as it is believed to be the largest forfeiture based on issions of criminal wrongdoing by a casino.

“Casinos, like all businesses, will be held to when they allow customers to evade U.S. laws for the sake of profit,”emphasized U.S. Attorney Tara McGrath. She further noted that the federal government’s oversight aims to ensure that illegal funds do not corrupt legitimate businesses. “Federal oversight seeks to prevent illegal funds from tainting legitimate businesses, ensuring that casinos offer a clean, thriving, and safe entertainment option.”

In response to the settlement, Wynn Resorts clarified its position, stating that the company was not fined but had agreed to a resolution payment. The resort stressed its commitment to upholding the highest standards of integrity.

“Wynn Resorts is committed to acting with the highest integrity and in full compliance with all laws and regulations governing our industry,” said a company spokesperson in a statement. “The improper actions that are the subject of the settlement were undertaken by individuals with whom we severed ties years ago. The actions of these individuals, for which Wynn has accepted responsibility, date back many years and violated Wynn’s compliance policies and procedures.”

The company further expressed satisfaction that the legal matter had been resolved, with the spokesperson stating, “We are pleased that the company has now resolved this long-standing legal matter.”

Involvement of Wynn Las Vegas Employees and Independent Agents

At the center of the allegations was a network of third-party independent agents working with Wynn Las Vegas employees. According to the USAO, WLV consistently contracted with unlicensed agents who were tasked with recruiting foreign high-rollers to gamble at the casino. In order to facilitate the gambling activity, these agents would transfer funds on behalf of the gamblers through intermediaries in Latin America and other regions.

The USAO revealed that these funds eventually ended up in WLV-controlled bank s in the Southern District of California. WLV employees, with full knowledge of their supervisors, then credited the s of each gambler with the transferred funds, allowing the foreign patrons to gamble or pay off debts at the casino. This arrangement enabled the foreign patrons to evade U.S. and international monetary transfer laws. Furthermore, the USAO indicated that despite the suspicious nature of the transactions, the casino failed to report them as required by law.

One particularly egregious case involved an independent agent named Juan Carlos Palermo, who facilitated over 200 illegal transfers totaling $17.7 million for more than 50 foreign patrons. Additionally, WLV allowed the use of schemes such as “Human Head” gambling, where one individual gambles on behalf of another, further raising concerns about the casino’s compliance with financial regulations.

The investigation into WLV’s activities was a multi-agency effort, involving federal authorities like Homeland Security Investigations and the Internal Revenue Service (IRS). Wynn Resorts was quick to point out that while the Non-Prosecution Agreement did not explicitly mention money laundering, several individuals involved in the case itted to related crimes.

A total of 15 individuals connected to the case have pled guilty to charges, including money laundering, resulting in penalties exceeding $7.5 million. Although Wynn itself did not face money laundering charges directly, the company’s connection to these illegal activities brought significant scrutiny and ultimately led to the $130 million forfeiture.

The case involving Wynn Las Vegas serves as a stern reminder of the consequences businesses face when they attempt to by laws designed to ensure financial transparency and prevent illicit activities. The $130 million forfeiture, one of the largest ever by a casino, sends a clear message that federal authorities will hold companies able when they engage in illegal practices. Wynn Resorts, while distancing itself from the individuals responsible for the actions, has taken steps to settle the matter and move forward. As U.S. Attorney McGrath made clear, casinos are not exempt from legal scrutiny and will face repercussions when their actions threaten to compromise the integrity of the financial system.

Source:

”Wynn Resorts to pay $130M over unlicensed money transfers”, sbcamericas.com, September 10, 2024.