Wynn Resorts forfeits US$130 million tied to unlicensed transfers

Wynn Resorts agreed to forfeit US$130.1 million in a settlement that avoided criminal prosecution in the US over unregistered money transfers by casino patrons.

Beginning in 2014, Wynn allowed money to be sent to its Las Vegas resort by unlicensed operators, according to Friday’s (Sep 6) settlement agreement with the US Attorney’s Office in San Diego. 

Casinos are highly regulated in the US and are required to report transactions of more than US$10,000 under federal banking laws. Wynn staff and third parties used a number of schemes to transfer money on behalf of international patrons who were otherwise not able to do so, according to a summary of the allegations.

In one scheme, called the Human Head, a proxy player was deployed to bet on behalf of a patron who was not able or willing to gamble under his own identity, prosecutors said in a statement. The proxy would place bets with the actual patron sitting behind or next to him. 

With Flying Money, another scheme, an unlicensed money processor would collect funds from various parties in the US and deliver them to the actual player in Las Vegas, prosecutors said. 

In another example, a third party asked a Wynn worker to store US$3 million in the employee’s personal safe.

In a regulatory filing on Friday, Wynn said it no longer employs or is affiliated with any of the individuals implicated in the transactions, and the company has deployed extensive remedial measures to prevent such actions in the future.

Separately, Wynn said it settled shareholder litigation stemming from the departure of its former chief executive officer, Steve Wynn, who was accused of sexual misconduct with employees. 

“Beginning in 2018, we took decisive action to transform our workplace environment and governance and begin a new chapter for Wynn,” the company said in a statement. “These settlements are the final milestone in that process, as we put legacy issues fully behind us and focus on our future.” BLOOMBERG