Wynn Resorts Ordered to Pay a Record $20M Penalty

The Nevada Gaming Commission has imposed a record fine of $20 million dollars against Wynn Resorts Ltd for not being efficient with their internal investigation of sexual misconduct claims made against their former CEO and casino mogul, Steve Wynn.

In January 2018, reports surfaced that Wynn harassed or coerced several female employees into sexual activities...

...such as his personal manicurist who deemed Wynn's advances as sexually aggressive as he supposedly offered her “hush” money (around $7.5 million, according to her claims) after she filed in an HR report.

The record-high financial penalty ends the investigation commenced by The Wall Street Journal that effectively led to Wynn stepping down from his position of a Chairman and selling his company shares. He was replaced by Matt Maddox.

A Much Higher Fine Was Considered

Wynn, who has previously denied all allegations against him on several occasions, was not part of the settlement nor did he or any of his representatives attend the commission hearing.

The only individual close to the accused side was one of Wynn's solicitors, Colby Williams, who said he was “aware of the fine,” but did not give any further comment.

The four commissioners who determined the fine said they even considered a higher amercement, but settled for $20 million in damages considering that the previous highest fine in the state's history was the one against CG Technology in 2014 - $5.5 million.

Under this settlement, Wynn Resorts will get to keep their gambling license. Steve Wynn's own Nevada license was frozen and no other disciplinary measures will be taken against him.

Safeguards of Industry's Reputation

One of the commissioners and a former federal court judge, Philip Pro, remarked that “it's not about one man, but about a failure of a corporate culture to effectively govern itself as it should.” He stressed the Commission's responsibility to “make sure license holder don't do things that bring disrepute on the industry.”

His fellow co-commissioner and Chairman, Tony Alamo, remarked that a $20,000,000 fine sends a clear message to all licensees that “such culture will not be tolerated” and that it “needs to ring across the entire country.”

Commissioner John Moran Jr. provided a keen observation:

“Isn’t it strange that the people ... that are the subject of this aren’t even in the room today? The people that are in this room now ... they’re left with the train wreck to try to fix it.”

A History of Misdeeds

The said assault on the salon worker happened in 2005 and even resulted in the victim's pregnancy...

...but it was acknowledged in Wynn Resorts' settlement documents that several key executives and board members were well-aware of the incident, but still failed or were not willing to investigate. The documents simply said that, “Mr Wynn engaged in intimate and sexual conduct with company employees.”

Another one of his victims was a cocktail server who claims Wynn pressured her into sexual relations in 2005 and 2006 and then paid her and her parents $975,000 in private settlement.

In last January's statement made by company spokesman, Michael Weaver, it was also said that the “company’s initial response during this period was driven by Mr. Wynn’s adamant denial of all allegations.”

They even admitted to “short-sighted focus on initially defending Mr. Wynn, rather than reassuring employees of the company’s commitment to a safe and respectful work environment.”

Source:

“Wynn Resorts fined $20 million over sex allegations”, Ken Ritter, fox23.com, February 26, 2019.