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Wynn Las Vegas casino is facing scrutiny for allegedly violating gambling laws and regulations by utilizing an unlicensed financial service provider to transfer funds for the casino’s financial gain.
In a DOJ press release, U.S. Attorney Tara McGrath said: “Casinos, like all businesses, will be held to account when they allow customers to evade U.S. laws for the sake of profit.
Federal oversight seeks to prevent illegal funds from tainting legitimate businesses, ensuring that casinos offer a clean, thriving, and safe entertainment option.”
In what may be the largest settlement of its kind, the casino on the Las Vegas Strip reached an agreement on Friday. Following the Southern District of California‘s prosecution, it will forfeit a record of $130.1 million to settle the allegations it is facing.
“Today’s settlement is believed to be the largest forfeiture by a casino based on admissions of criminal wrongdoing,” the U.S. Attorney’s Office in San Diego said in a statement.
Key takeaways
- Wynn Las Vegas signed a non-prosecution agreement and paid $130.1 million to settle allegations of financial fraud.
- Investigation reveals widespread money laundering schemes involving unlicensed agents and foreign gamblers.
- Wynn commits to compliance and integrity, moving forward from past wrongdoing.
Prosecutors uncover alleged money laundering operation at Wynn LV
Prosecutors uncovered quite a handful of illicit activities at Wynn Las Vegas (NASDAQ: WYNN), including a complex network of agents and payments designed to evade laws in Latin America, China, and the US. One agent alone facilitated over 200 transactions totaling more than $17 million.
This investigation has already led to 15 individuals pleading guilty to crimes such as money laundering and unauthorized money transmission, resulting in penalties exceeding $7.5 million.
Also, prosecutors allege that Wynn Las Vegas regularly partnered with unlicensed money transfer agents to recruit foreign gamblers.
These agents would collect funds from the gamblers and transfer them through a network of companies, bank accounts, and nominees in Latin America and other locations. The funds would ultimately end up in a WLV-controlled bank account in California, where the gamblers could access them to fund their gaming activities.
The investigation discovered that WLV enabled financial transactions with individuals previously convicted of financial crimes.
Wynn responds to settlement
In the wake of the settlement, Wynn Resorts has released a statement reaffirming its commitment to operating with integrity and following all relevant laws and regulations. According to a news post by the Las-Vegas Review-Journal, Wynn stated:
“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. ”
After Wynn weathered a series of scandals and controversies, the Las Vegas casino operator announced a breakthrough in changing its governance and workplace culture. They now have created a new run for the company.
“Beginning in 2018, we took decisive action to transform our workplace environment and governance and begin a new chapter for Wynn. These settlements are the final milestone in that process, as we put legacy issues fully behind us and focus on our future,” a statement from the company read.
Continuing the crackdown on financial crimes, the IRS-CI stressed the need for strict adherence to federal regulations. Carissa Messick, special agent in charge for IRS-CI in Las Vegas added:
“Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities. Deliberately avoiding Bank Secrecy Act requirements is a form of money laundering.
The IRS Criminal Investigation is committed to following the money and enforcing these laws, wherever it leads.”
