Wynn Resorts’ Las Vegas subsidiary has agreed to forfeit more than $130 million to settle criminal allegations that it conspired with unlicensed money-transmitting businesses to transfer funds for the financial benefit of Wynn Las Vegas (WLV) while circumventing U.S. and foreign laws.
In a release, the U.S. Attorney’s Office, Southern District of California (USAO) stated that WLV admitted as part of a Non-Prosecution Agreement to illegally using unregistered businesses to circumvent the conventional financial system. The USAO added that the settlement is believed to be the largest forfeiture by a casino based on admissions of criminal wrongdoing.
“Casinos, like all businesses, will be held to account when they allow customers to evade U.S. laws for the sake of profit,” said U.S. Attorney Tara McGrath. “Federal oversight seeks to prevent illegal funds from tainting legitimate businesses, ensuring that casinos offer a clean, thriving, and safe entertainment option.”
Wynn stressed in its own statement that the company was not fined but rather agreed to a resolution payment.
“Wynn Resorts is committed to acting with the highest integrity and in full compliance with all laws and regulations governing our industry,” said a Wynn statement shared with SBC Americas. “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.
“We are pleased that the company has now resolved this long-standing legal matter.”
Wynn Las Vegas employees worked with third parties to move funds
The USAO said that WLV regularly contracted unregistered third-party independent agents to recruit foreign gamblers to the casino. In order for the gamblers to repay casino debts or have funds available to gamble, the agents transferred the gamblers’ funds through third parties in Latin America and elsewhere.
The money ultimately ended up in a WLV-controlled bank account in the Southern District of California. The Attorney’s Office added that WLV employees, with the knowledge of their supervisors and working with the independent agents, eventually credited the WLV account of each individual patron with funds.
The transactions enabled foreign gamblers to evade laws in both the U.S. and abroad that govern monetary transfer and reporting, said the statement. The Attorney’s Office asserted that the casino failed to report these transactions despite the presence of suspicious activity.
In one example cited by the Attorney’s Office, an independent agent named as Juan Carlos Palermo made over 200 illegal transfers totaling $17.7 million for more than 50 foreign patrons. Wynn Las Vegas also allowed schemes including one known as “Human Head” gambling, wherein one person gambles on behalf of another.
Federal authorities, including Homeland Security Investigations and the IRS, collaborated on the investigation. While Wynn stressed that the Statement of Facts included in the Non-Prosecution Agreement did not mention money laundering, 15 others involved in the case have admitted to money laundering and related crimes, resulting in penalties of over $7.5 million.
