2 Las Vegas casinos to pay $7.45M after former exec’s guilty plea in money laundering probe
Jan 25, 2024
Scott Sibella, the former president of Resorts World Las Vegas and MGM Grand, has pleaded guilty to not filing suspicious activity reports while he was working at MGM Grand back in 2018.
LAS VEGAS — MGM Grand and The Cosmopolitan of Las Vegas will pay a combined $7.45 million after a former executive pleaded guilty to federal charges late Wednesday in Los Angeles.
Scott Sibella, 61, pleaded guilty to one count of failure to file reports of suspicious transactions required to be made by casinos, according to a news release Thursday from the U.S. Attorney’s Office, Central District of California. The investigation revealed an illegal gambler’s money laundering activities.
Sibella was most recently the president and COO of Resorts World, but was terminated in September after the company was made aware of actions that “violated company policies and the terms of his employment,” Resorts World officials said.
But the investigation was connected to Sibella’s time at MGM Grand and The Cosmopolitan, and his dealings with Wayne Nix, a customer who “ran and operated an illegal bookmaking business,” the U.S. Attorney’s Office said.
Sibella knew about Nix’s business, but allowed him to gamble at MGM Grand-affiliated properties with the profits from the illegal business, the U.S. Attorney’s Office said. And Sibella failed to notify the casino’s compliance department. Sibella was president of MGM Grand from about August of 2018 until February of 2019.
According to court documents unsealed today, Sibella admitted to law enforcement in 2022 that he believed Nix was involved in illegal sports bookmaking, but he “didn’t want to know because of my position.”
“If we know, we can’t allow them to gamble,” Sibella said.
“I didn’t ask, I didn’t want to know I guess because he wasn’t doing anything to cheat the casino,” he said, according to court records.
Sibella pleaded guilty before U.S. District Judge Dolly M. Gee. He is scheduled to be sentenced on May 8 and faces a maximum penalty of five years in prison and a fine of $250,000.
Nix pleaded guilty in April 2022 to one count of conspiracy to operate an illegal gambling business and one count of subscribing to a false tax return. He is scheduled to be sentenced on March 6.
“In related matters that resolve an investigation into alleged violations of money laundering laws and the BSA (Bank Secrecy Act), MGM Grand and The Cosmopolitan of Las Vegas casinos have entered into settlements that require them to pay a combined $7.45 million, undergo external review, and enhance their anti-money laundering (AML) compliance program,” according to a news release.
The MGM Grand and The Cosmopolitan — both operated by MGM Resorts International — have entered into non-prosecution agreements over the money laundering and Bank Secrecy Act investigation. MGM Grand admitted that Sibella and two casino hosts knew about Nix’s illegal bookmaking operations and even comped him lavish golf trips.
“MGM Grand also admitted that Nix at times used the golf trips with MGM Grand’s high-net-worth customers to solicit new customers for his illegal gambling business. By 2020, MGM Grand had accepted $4,079,830 in cash that were illicit proceeds from Nix’s illegal gambling business,” according to the news release.
The Cosmopolitan also admitted knowing of Nix’s operations and accepted $928,600 in cash in illicit proceeds.
Both resorts agreed to enhance their compliance program, committing to spend at least $750,000 over two years on an external compliance review. They agreed to further cooperation in any additional investigations that come out of their associations with Nix.
Kirk Hendrick, chairman of the Nevada Gaming Control Board, released a statement that said, in part, “The NGCB has been monitoring the situation, and will ensure that all individuals and entities involved in Nevada’s gaming industry are held to the highest standards.”
In February 2023, the board cleared Sibella of separate allegations involving another convicted bookmaker who reportedly held an ownership position at a Resorts World restaurant. The board found those allegations to be unsubstantiated. If they had been validated, Resorts World could have faced penalties.
ADDENDUM: I thought with the Mob being prosecuted and removed from Las Vegas the gambling industry would be squeaky clean. According to this news story, that is not the case. Money laundering is big business. Is the Mob really gone from Vegas? - Trey Rusk
2 comments:
Any business that deals with a lot of cash can be used for this purpose. Outlaw Motorcycle Gangs often run food trucks in order to launder drug money. You can hide a lot of money that way as long as you declare it and pay taxes on it.
IMHO, Sports betting has always been crooked. Anytime athletes are involved with big money gamblers, there are going to be problems.
Need to clean dirty money? I heard folks will deposit the money with the casino and hire a professional to play Black Jack while drawing on a marker. Stay a couple of days in a comped suite and eat at the best restaurants. Take in a couple of shows. After it's all said and done, pay a percentage to the player and tip the dealer. Establish a relationship with a casino host (wink, wink) then walkout with clean money. This cannot be done without a casino Executive Host's knowledge. IMHO, the boys are back in town.
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