Inside the Justice Department’s $130M Illegal Money Transfer Case Against Wynn Resorts

Inside the $130M Case Against Wynn Resorts

Wynn Resorts Ltd., a large casino company, has agreed to pay $130 million to U.S. federal authorities. This payment comes after the company admitted allowing illegal money transfer businesses to funnel money to gamblers at its Las Vegas Strip casino. The U.S. Justice Department identified the $130 million as funds involved in these questionable transactions.

The company, which is publicly traded, emphasized that this settlement was not a fine. It also stated that the investigation, which lasted for almost a decade, did not find evidence of money laundering.

Casinos Must Follow U.S. Laws

U.S. Attorney Tara McGrath, based in San Diego, said the settlement serves as a reminder that casinos must follow U.S. laws. They will be held accountable if they allow foreign customers to bypass these laws. She pointed out that this was one of the largest forfeitures from a casino, showing how serious the wrongdoing was.

Wynn Resorts also said it had cut ties with all the individuals and businesses involved in these illegal transactions.

How the Illegal Transfers Happened

The Justice Department revealed some methods used to move money between Wynn Las Vegas and gamblers from other countries like China. One method, called “Flying Money,” involved using multiple foreign bank accounts to transfer funds for a customer who couldn’t directly access money in the U.S. Another method involved having a person, called a “Human Head,” gamble on behalf of someone else who could not legally place bets.

In one case, an independent agent working for Wynn conducted over 200 transfers worth nearly $18 million for more than 50 foreign gamblers using bank accounts linked to the casino.

Wynn Resorts’ Response

Wynn Resorts called this settlement the final step in resolving issues from the past and shifting focus to the future. The company stated that the case began in 2014, but it wasn’t until now that they reached a final agreement with the government.

Notably, the case did not mention former CEO Steve Wynn, although his departure from the company in 2018 after sexual misconduct allegations was a significant event. Steve Wynn, who built a luxury casino empire, resigned and sold his shares in the company following these allegations.

Steve Wynn’s Departure and Legal Troubles

Although Steve Wynn no longer has any ties to the company, his exit has been surrounded by legal challenges. In 2019, the Nevada Gaming Commission fined Wynn Resorts $20 million for failing to investigate sexual misconduct claims against him. Massachusetts gambling regulators also fined the company $35.5 million for not disclosing these allegations while applying for a casino license.

In 2019, Wynn Resorts settled shareholder lawsuits by agreeing to accept $20 million from Steve Wynn and $21 million from insurance carriers. These lawsuits accused the company’s directors of not informing shareholders about the misconduct allegations.

As of Friday, the Justice Department confirmed that 15 people involved in these illegal transactions admitted to crimes such as money laundering and unlicensed money transfers, paying more than $7.5 million in penalties.

Wynn Resorts stressed in their statement that their non-prosecution agreement with the government does not include any admission of money laundering.