Wynn Las Vegas, a renowned casino in Las Vegas, has agreed to forfeit $130,131,645 to resolve criminal charges related to its financial operations. This settlement was announced on Friday, September 6, 2024, by the Office of the U.S. Attorney for the Southern District of California, and is believed to be the largest amount forfeited by a casino for admitting to criminal conduct.
Charges and Settlement Details:
The charges allege that Wynn Las Vegas conspired with unlicensed global remittance companies to provide money transfer services to the casino, for economic benefits. This involved complex transactions that allowed foreign gamblers to circumvent both foreign and U.S. currency laws.
U.S. Attorney Tara McGrath emphasized the importance of accountability, stating: "Like all businesses, casinos will be held accountable if they allow customers to evade U.S. laws for profit. Federal oversight is intended to prevent illegal funds from tainting legitimate businesses, ensuring that casinos offer clean, prosperous, and safe entertainment options."
As part of a non-prosecution agreement, Wynn Las Vegas admitted to using these unregistered businesses to bypass the traditional financial system, employing methods like "nominee" gambling and "flying money" transfers to obscure the origins and flow of funds.
Reportedly, in one case, the transactions involved an independent agent named Juan Carlos Palermo, who managed over 200 transactions involving more than $17.7 million through bank accounts associated with Wynn Las Vegas for foreign casino customers. The casino also engaged in practices such as allowing proxy gambling under another person's direction, deliberately avoiding federal laws requiring scrutiny of the source of funds.
Government and Wynn's Response to the Settlement:
In an official press release from the DOJ, San Diego HSI Acting Special Agent Christopher Davis stated: "This case highlights the complexity of financial crimes and underscores our commitment to legally sanction those attempting to undermine U.S. financial laws." Carissa Messick from the IRS Criminal Investigation Division added: "Intentionally evading the Bank Secrecy Act requirements constitutes money laundering. Regardless of the outcome, we are committed to enforcing these laws."
Wynn Resorts confirmed that the $130 million came from funds involved in the transactions. The settlement includes an agreement to enhance the company's compliance measures to prevent future legal issues. The company expressed relief at resolving this long-standing legal matter, noting its cooperation with the multi-year investigation that began in 2014.
Additionally, in another legal case, Wynn also reached a settlement in a class-action lawsuit regarding sexual harassment allegations against its former chairman and CEO, Steve Wynn. This settlement marks the end of litigation related to these allegations.
According to the Nevada Independent, this substantial fine and the accompanying legal resolution highlight the strict monitoring and regulation of casino operations by U.S. authorities. Although the Nevada Gaming Control Board is aware of the non-prosecution agreement, it has not yet disclosed whether it will investigate the matter.
