Wynn Cooperating with DOJ After Receiving Two Subpoenas Tied to Anti-Money Laundering Policies

Posted on: August 7, 2020, 10:15h. 

Last updated on: August 7, 2020, 12:11h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Shares of Wynn Resorts (NASDAQ:WYNN) are lower by nearly three percent in midday trading Friday. That’s after the company revealed in a 10-Q filing with the Securities and Exchange Commission (SEC) that it received two grand jury subpoenas in the first half of this year.

Wynn Shares Lower on Subpoena News
The Justice Department is looking into potential anti-money laundering violations at Wynn Las Vegas, seen here. (Image: Bloomberg)

The operator of Wynn Las Vegas and Encore said it received requests for information from the US Attorney for the Southern District of California pertaining to the operator’s internal anti-money laundering protocols.

The Company received two grand jury subpoenas regarding various transactions at Wynn Las Vegas relating to certain patrons and agents who reside or operate in foreign jurisdictions,” according to the regulatory filing.

It’s not clear if a criminal act took place. But if that did occur, it’s possible that the perpetrator resides in Southern California, because the US Attorney’s Office for the aforementioned district covers Imperial and San Diego counties, not the Las Vegas area.

Sparse Details

At this juncture, details on the extent of DOJ’s Wynn probe are scant. But the company says no charges have been brought and that it’s cooperating with the investigation.

“The company continues to cooperate with the US Attorney’s office in its investigation, which remains ongoing,” said the gaming operator in the filing. “Because no charges or claim or claims have been brought, the Company is unable to predict the outcome of the investigation, or reasonably estimate the possible loss or range of loss, if any, which could be associated with the resolution of any possible charges or claims that may be brought against the company.”

The regulatory document indicates DOJ is looking into transactions that took place at Wynn Las Vegas. Neither neighboring Encore, Encore Boston Harbor — Wynn’s other domestic property — nor its two Macau venues were mentioned. The US Attorney’s Office told Casino.org it cannot comment on the investigation.

The 10-Q filing revealing the interaction with the Justice Department was released a couple of days after Wynn reported second-quarter results. Publicly traded companies listed on major US exchanges are required to publish 10-Q’s on a quarterly basis.

Recent History

Wynn isn’t the only gaming company to recently receive requests from DOJ for information on anti-money laundering policies and procedures.

In June, it was revealed that the Justice Department is investigating possible anti-money laundering violations at Marina Bay Sands, the Singapore integrated resort controlled by Wynn rival Las Vegas Sands (LVS).

That investigation is looking into the property’s relationship with junk operators, includes the subpoena in January of Marina Bay Sands’ former head of compliance, and is ongoing.