Wynn Las Vegas, a prominent Las Vegas casino and a subsidiary of Wynn Resorts Limited, has agreed to forfeit $130,131,645 to settle criminal allegations related to its financial operations. This settlement, announced on Friday, Sept 6, 2024, by the U.S. Attorney’s Office, Southern District of California, marks what is believed to be the largest forfeiture by a casino based on admissions of criminal wrongdoing.

Details of the allegations and settlement:

The allegations state that Wynn Las Vegas conspired with unlicensed money transmitting businesses globally to facilitate fund transfers for the financial benefit of the casino. This operation involved intricate transactions, allowing foreign gamblers to bypass foreign and U.S. monetary laws.

U.S. Attorney Tara McGrath emphasized the importance of accountability, stating, “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.”

As part of the Non-Prosecution Agreement, Wynn Las Vegas admitted to using these unregistered businesses to circumvent the conventional financial system, employing methods like “Human Head” gambling and “Flying Money” transfers to obscure the origins and movements of money.

In one instance, transactions reportedly involved an independent agent named Juan Carlos Palermo, who managed more than 200 transfers involving over $17.7 million for foreign casino patrons through bank accounts linked to Wynn Las Vegas. The casino also engaged in practices like allowing a proxy gambler to operate under another individual’s direction, deliberately avoiding scrutiny of the funds’ sources required by federal laws.

Government and Wynn Responses to the settlement:

“This case exemplifies the complex nature of financial crimes and underscores our commitment to bringing justice to those who seek to undermine U.S. financial laws,” said Christopher Davis, acting special agent in charge for HSI San Diego in the Department of Justice’s (DOJ) official press release. Carissa Messick of IRS-Criminal Investigation added, “Deliberately avoiding Bank Secrecy Act requirements is a form of money laundering. We are committed to enforcing these laws, wherever it leads.”

Wynn Resorts confirmed that the$130 million payment stems from the funds involved in the questioned transactions. The settlement includes an agreement to enhance the company’s compliance measures to prevent future legal issues. The company expressed relief at resolving this long-standing legal matter and noted its cooperation with the multiyear investigation that began in 2014.

In a separate legal matter, Wynn also reportedly settled a class action lawsuit concerning allegations against its former Chairman and CEO Steve Wynn, related to sexual harassment claims. This settlement marks the conclusion of litigation tied to these allegations.

According to the Nevada Independent, this significant financial forfeiture and the accompanying legal resolutions highlight the ongoing efforts by U.S. authorities to monitor and regulate casino operations strictly. The Nevada Gaming Control Board, while aware of the non-prosecution agreement, has not disclosed whether it will conduct its own investigation into these matters.