Resorts World Las Vegas and several former executives, including ex-president Scott Sibella and attorney David Chesnoff, are facing a federal civil lawsuit that accuses them of running the property as a racketeering operation. The case, brought in Nevada by high-stakes gambler R.J. Cipriani and businessman James Russell, sets out a wide range of alleged violations involving money laundering, internal failures, and retaliation against a federal witness.

The complaint asserts that the casino’s leadership operated the property with ongoing disregard for gaming rules and financial reporting laws. Plaintiffs argue that from the resort’s 2021 opening, the company and its parent, Genting Berhad, created conditions that allowed illegal gambling activity to flourish. According to Nevada Current, the suit states, “Resorts World has proven beyond question that it is unfit and incapable of operating a casino and hotel complex in compliance with the law” and claims the resort and Genting “have proven their bona fides as a corrupt racketeering enterprise that operates with complete disregard of basic governance, corporate ethics and the law.”

According to the filings, the alleged racketeering activity involved an “association-in-fact enterprise,” linking Sibella, Chesnoff, and others to acts tied to money laundering and failures in regulatory reporting. Plaintiffs allege the defendants welcomed gamblers whose funds came from unlawful sources, enabling them to move illicit proceeds through the casino.

A Resorts World spokesperson dismissed the lawsuit, saying, “We typically do not comment on pending litigation, but this lawsuit repackages old matters and is yet another attempt to bring negative attention to Resorts World Las Vegas and seek some form of compensation. We will vigorously defend ourselves against this meritless action.”

Retaliation Claims and Prior Investigations

A central piece of the case involves Cipriani, who has long provided information to federal authorities investigating illicit gambling networks. The new lawsuit argues that after he reported concerns about questionable activity at the casino, executives took steps to force him out. The filing claims, “Working together, the Defendants arranged to ‘arrest’ Plaintiff Cipriani on false charges, and, for good measure, manufactured a separate criminal charge of cheating at blackjack, with the clear intent and message to silence and prevent Plaintiff Cipriani’s future Cooperation.”

Previous attempts by Cipriani to pursue civil claims were dismissed, though the Ninth Circuit Court of Appeals recently sent one case back to district court for further review, excluding Sibella as a defendant.

Sibella has been the focus of continued scrutiny. After a 2023 report revealed a federal investigation involving Resorts World, MGM Grand, and Sibella, the company terminated him for violating internal policy. He later pleaded guilty in federal court for failing to file a suspicious activity report during his tenure at MGM Grand, and he subsequently lost his Nevada gaming license.

Regulators earlier fined Resorts World Las Vegas $10.5 million for permitting illegal bookmakers Mathew Bowyer and Damien LeForbes to gamble without documented sources of income. Both men eventually pleaded guilty to illegal bookmaking and money laundering.

Financial Claims and Broader Industry Impact

Beyond the allegations tied to Cipriani, the lawsuit includes claims from Russell, who contends the casino enabled fraudster Brandon Sattler to continue gambling with misappropriated funds. Russell says the failure to restrict Sattler contributed to his own inability to recover a $10 million loan. Sattler, described in the filings as “a member of the enterprise,” is currently serving a prison sentence for defrauding investors.

The complaint also connects the issues in Nevada to Genting’s ongoing efforts to expand in New York. The New York State Gaming Facility Location Board recently recommended that Resorts World receive a casino license. However, the board noted omissions in the company’s disclosures related to disciplinary actions at multiple Genting-operated properties and remarked that the lack of transparency was “concerning.”

As litigation proceeds, the case may influence federal and state regulatory evaluations surrounding the company’s operations. The plaintiffs seek both financial damages and measures aimed at changing how the property is run.