Wynn Resorts, a prominent casino company, has reached a settlement with the US Department of Justice (DOJ) in which they agreed to forfeit $130 million. This agreement, termed a “non-prosecution agreement,” stems from a long-standing case involving unlicensed global money transmitting. The Justice Department opted not to pursue criminal charges in this matter, which dates back to 2014. Factors that influenced this decision included the company’s cooperation in the investigation and the historical context of the transactions in question.
It is important to note that the $130 million forfeiture is not considered a fine, as the funds will be sourced from the payments related to the case. Wynn Resorts has also taken steps to enhance its compliance systems to prevent similar issues from occurring in the future. This settlement marks the largest payment made by a casino company in Nevada to the DOJ, surpassing the previous record set by Las Vegas Sands in 2013 for a money laundering case.
The core issue at hand primarily revolves around transactions at the Wynn Las Vegas property, where investigators uncovered disguised payments involving former agents, employees, and patrons. According to a filing with the Securities and Exchange Commission (SEC), these individuals violated the company’s compliance policies and procedures over an extended period. The transmission process for payments at Wynn Resorts circumvented both US and international laws concerning money transfers and transaction reporting.
US Attorney Tara McGrath emphasized the importance of holding businesses accountable for allowing customers to evade laws for the sake of profit. The DOJ’s involvement in this case underscores the significance of enforcing regulations within the gaming industry to maintain integrity and transparency.
In addition to the settlement with the DOJ, Wynn Resorts disclosed in the same SEC filing that they had reached a resolution in a shareholder class action lawsuit related to expenses incurred by key management figures in response to sexual misconduct allegations against the company’s founder and former CEO, Steve Wynn. Following these allegations, Steve Wynn resigned from his position and divested his stock holdings. The company did not disclose the specific amount of the settlement, but confirmed that all claims against current and former executives and directors have been resolved.
Overall, the agreements reached by Wynn Resorts with the DOJ and in the shareholder lawsuit signify a concerted effort by the company to address past issues, improve compliance measures, and uphold accountability within its operations. By settling these matters, Wynn Resorts aims to move forward with a renewed focus on regulatory compliance and ethical business practices.