Wynn Resorts has reached an agreement with the US Attorney’s Office for the Southern District of California and the US Department of Justice by which it will pay US$130 million to avoid prosecution and settle a case related to the use of unlicensed money transfer businesses to fund customers at its Las Vegas resort.
In a filing, Wynn said the agreed amount represents forfeiture of “funds involved in the transactions at issue” with the company also agreeing to make “certain enhancements” to its compliance program.
As part of the non-prosecution agreement (NPA), the DOJ will – pending Wynn fulfilling its obligations – not bring any criminal charges against Wynn Las Vegas concerning the subject matter of its investigation.
“In reaching the resolution set forth in the NPA, the DOJ took into account the historical nature of the transactions at issue; Wynn Las Vegas’s cooperation with the DOJ’s multi-year investigation; that Wynn Las Vegas no longer employs or is affiliated with any of the individuals implicated in the transactions at issue; and Wynn Las Vegas’s extensive remedial measures, many of which were undertaken prior to the parties entering into the NPA,” Wynn said in its filing.
In a statement of its own, the US Attorney’s Office for the Southern District of California outlined multiple methods that had been used by Wynn to aid customers in accessing funds, including the use of third-party agents acting as unlicensed money transmitting businesses to recruit foreign gamblers to Wynn Las Vegas. These agents would funnel through companies, bank accounts and other third-party nominees in Latin America and elsewhere, and ultimately into a Wynn Las Vegas-controlled bank account in the Southern District of California, the US Attorney’s Office explained.
It also outlined “Human Head” activities whereby one person would gamble onsite as a proxy for another person located nearby, often to skirt federal Bank Secrecy Act or Anti-Money Laundering laws that rendered the observer unable to gamble themselves.
Another method known as “Flying Money” would see a money processor, acting as an unlicensed money transmitting business, collect US dollars in cash from third parties in the US and deliver it to a Wynn Las Vegas patron who could not otherwise access cash in the US. The patron would then electronically transferred the equivalent value of foreign currency from their foreign bank account to a foreign bank account designated by the money processor, paying the money processor a percentage of the value transferred.
“Like Human Head gambling, Wynn Las Vegas knowingly allowed this form of gambling without scrutinizing the source of funds and without reporting the suspicious activity,” the US Attorney’s Office said.
“Casinos, like all businesses, will be held to account when they allow customers to evade US laws for the sake of profit,” said US 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.”
In statements made to local media, Wynn clarified that the actions were historical in nature and did not amount to money laundering. The company also stressed that the US$130 million settlement was not a fine.
In comments made to The Associated Press, a Wynn spokesperson said, “Several former employees facilitated the use of unlicensed money transmitting businesses, which both violated our internal policies and the law, and for which we take responsibility.”
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