Wynn Las Vegas Pays $130 Million to Settle Financial Misconduct Charges
Date: 2024-09-09 Author: Alex Crawford Categories: CASINO
The U.S. Department of Justice announced that Wynn Las Vegas, a subsidiary of Wynn Resorts, has agreed to pay more than $130 million to settle charges that it worked with unlicensed money transmitters to transmit money. It is the largest such settlement by a casino to date.
Charges of Conspiring with Illegal Businesses
Wynn Las Vegas is accused of engaging in transactions with unlicensed entities around the world to transmit funds that benefited the company financially. As part of a non-prosecution agreement, Wynn Las Vegas admitted to circumventing the traditional financial system.
The company admitted to working with independent agents who acted as unlicensed money transmitters to attract foreign players. These agents moved funds through third parties located in Latin America and other regions to allow players to pay off debts or fund their accounts to play at the casino.
The funds were deposited into a bank-controlled account in Southern California by Wynn Las Vegas and then transferred to the casino account. This complex arrangement allowed foreign players to circumvent wire transfer and reporting laws.
Examples of Violations
The DOJ cited several examples. One involved independent agent Juan Carlos Palermo, who operated unlicensed money transmitters in and out of the United States. He processed more than 200 wires to accounts controlled by Wynn Las Vegas or related entities totaling $17.7 million, representing more than 50 foreign players.
Another method involved someone playing at a casino on behalf of someone else who was unable or unwilling to play under their own name due to legal restrictions.
A third method, described as “flying money,” involved an unlicensed wire transfer processor collecting cash dollars from third parties in the U.S. and passing them on to a player who did not have access to the funds. In return, the player would wire an equivalent amount in foreign currency to an overseas account designated by the processor.
Wynn admitted providing such gaming opportunities without verifying the source of the funds or reporting suspicious transactions. Some of these transactions involved multimillion-dollar amounts and should have triggered suspicious activity reports. In particular, a number of transactions were linked to a man who served six years in a Chinese prison for financial fraud.
Experts on the importance of following the rules
U.S. Attorney Tara McGrath stressed that casinos should be held accountable for violating U.S. laws to make a profit. Christopher Davis, Acting Special Agent in Charge of HSI San Diego, noted that financial fraud can be extremely complex and emphasized the importance of collaborating with partner agencies in this matter.
Carissa Messick, Special Agent in Charge of IRS-CI in Las Vegas, added that federal laws exist to detect and prevent such illegal activities. She criticized the deliberate evasion of laws, calling it a crime.
Finally, DEA Special Agent in Charge Brian Clark said law enforcement must work hard to ensure that the financial system is not exploited in ways that circumvent the law.
The Justice Department also cited 15 other defendants who previously pleaded guilty to money laundering and other crimes.
