Wynn Las Vegas has agreed to pay $130 million to settle a case involving federal prosecutors in San Diego, the San Diego Union-Tribune reports. The Las Vegas Strip casino admitted to working with unlicensed money transmitters several years ago, which helped gamblers circumvent U.S. financial laws.
The casino signed a non-prosecution agreement Friday, which includes an eight-page document outlining a series of criminal allegations. The non-prosecution agreement allows the casino to avoid criminal charges if it follows certain rules for the next two years. Wynn Las Vegas must also pay the settlement amount in two installments to avoid criminal charges.
“The criminal penalty paid by Wynn is the largest criminal penalty in the history of the Department of Justice for a casino. The criminal conduct involved third-party businesses, agents, and related entities in the United States, Latin America, and Asia,” former federal prosecutor Daniel Silva, who led the investigation while at the US Attorney’s Office, said in a statement to Covers.
About the case
The case focuses on how gamblers allegedly moved money into the U.S. using unlicensed money-transmitting businesses. These funds were alleged to have been placed into a local bank account and then transferred to the casino. Employees at Wynn Las Vegas, with their supervisors' knowledge, moved the money into the gamblers' individual casino accounts. Federal prosecutors said high-ranking company executives were also involved in the conspiracy.
“Through the use of these money transmitting businesses, gamblers at Wynn (and Wynn itself) were able to evade foreign and U.S. laws governing monetary transfer and reporting,” said Silva. “These transfers were extremely sophisticated, allowing for international underground banking transfers that concealed the true ownership, nature, and source of the funds, which is contrary to the transparency intended by America’s anti-money laundering legal regime — known as the 'Bank Secrecy Act.'”
The non-prosecution agreement confirms that the casino “no longer employs or is affiliated with the individuals” involved in the conduct.
One of the main individuals alleged to be involved was Juan Carlos Palermo, who acted as an independent agent for Wynn. He allegedly ran multiple unlicensed businesses that helped gamblers move large sums of money, over $17.7 million in total while avoiding legal checks. Palermo cooperated with investigators after pleading guilty in 2022 and had his case dismissed earlier this year.
Wynn’s response
“Wynn Resorts is committed to acting with the highest integrity and in full compliance with all laws and regulations governing our industry,” said a spokesperson on behalf of the company. “The actions of these individuals, for which Wynn has accepted responsibility, date back many years and violated Wynn’s compliance policies and procedures.”
The casino also said it has recently settled a class-action lawsuit regarding sexual misconduct allegations against Steve Wynn, the company’s founder and former chairman and CEO.
“Beginning in 2018, we took decisive action to transform our workplace environment and governance and begin a new chapter for Wynn,” said the company. “These settlements are the final milestone in that process, as we put legacy issues fully behind us and focus on our future.”
Wynn Las Vegas, often referred to as Wynn, is a luxury resort and casino owned and operated by Wynn Resorts. The casino opened in 2005 as the most expensive casino resort ever built, costing $2.7 billion. In FY 2023, Wynn generated a record $6.53 billion in operating revenue, up 73.9% from 2022, which saw $3.76 billion.
